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Student property remains a smart investment in this Brexit era

Student property remains a smart investment in this Brexit era
  • Over £2.1bn of UK student accommodation transacted post Brexit referendum compared to £1.9bn earlier in the year (Savills)
  • Almost half of UK university towns and cities have PBSA supply levels below 30% (JLL)
  • Plymouth only has 20% – 30% of PBSA supply relative to student numbers (JLL)
  • Beaumont Square, Plymouth presents a smart investment opportunity in the current market (Aspen Woolf) 

The latest Student Housing report from Savills (Spotlight 2017) supports the sentiment shared by many domestic and indeed international investors, that investing in PBSA (purpose built student accommodation) is the way to go in the current UK market.

Despite a tricky economic year, over £2.1bn was transacted in the months following the Brexit referendum, compared to £1.9bn earlier in 2016 reports Savills.

Analysis from JLL revealed that across 79 university towns and cities, almost half have student accommodation supply levels below 30% emphasizing strong development opportunities for PBSA. This, in addition with greater restrictions on the alteration of use from single dwellings to HMOs under Article 4, is set to play a significant role in the growth of the PBSA sector.

Indeed, according to experts, the UK’s decision to leave the EU has not resulted in any negative effects to the PBSA sector as of yet, in fact it seems to have intensified the appetite of property investors now that sterling is worth up to 20% less than many other foreign currencies, overseas investments are at an all-time high as Savills reports.

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One UK university city with a chronic undersupply is Plymouth; according to JLL the coastal city has only 20% – 30% of PBSA relative to student numbers making leading investment agency Aspen Woolf’s luxurious Beaumont Square development a no brainer for investors looking to enter this Brexit-proof market.

“Now is the time to invest in PBSA and Beaumont Square in Plymouth is the best place to start with. The combination of low levels of PBSA for the city’s population combined with the enforcement of Article 4 has made Plymouth stand out amongst the rest.

 “Having sold PBSA for a number of years now, we are finding that students are looking for more luxurious accommodation and are willing to pay higher costs for it, which in turn is shaping the standard of PBSA units on the market and making those of this high standard even more attractive to investors.”

Oliver Ramsden, Director, Aspen Woolf

Beaumont House offers 39 studio apartments from £78,500 with an 8% NET yield assured for three years. Currently under construction, the brand new, fully equipped student studios complete with high quality furnishing and stylish finishes will be ready for the 2017/18 academic year.

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