As much as 75 per cent of purpose built student accommodation (PBSA) for the next educational year has already been taken in some cities - leaving potential opportunities for buy to let investors to help meet demand.
Stripe Property Group analysed demand for PBSA rental stock within the postcodes of the top 50 UK universities to reveal which were most in-demand and where prospective first year students face the toughest challenge in securing accommodation
The research shows that the University of York is the most in demand university within the UK when it comes to PBSA. Currently across the YO10 postcode, 75 per cent of all PBSA rental stock listed on the market has already been snapped up by students. York is followed by the University of Strathclyde where 73 per cent of all student rentals have already been let.
In the BA2 postcode, home to the University of Bath, 54 per cent of student rental stock has been taken already.
Queen Mary University of London in the E1 postcode of Tower Hamlets is home to the highest student demand in the capital, where 42 per cent of all PSBA rentals listed on the current market have been taken.
In Birmingham’s B4 postcode, 40 per cent of student lets have been let by those attending Aston University while demand is at 39 per cent in the WC2A and WC2R postcodes, home to the London School of Economics and King’s College London.
The rest of the top 10 most in-demand universities for PBSA rental homes include Shropshire’s Harper Adams University (35 per cent), the University of Essex (32 per cent) and the University of Glasgow (20 per cent).
“There’s always going to be high demand for a spot at one of the nation’s best universities but the burning issue of student accommodation availability is one that is impacting students. As our research shows, over 70 per cent of currently listed student rental stock has already been taken surrounding some universities. This really highlights the uphill struggle facing many students when it comes to securing a suitable roof over their heads” explains the managing director of Stripe Property Group, James Forrester.
“The private rental sector does help to pick up some of the slack and there are some outstanding PBSA-focussed developers out there working tirelessly to bring new stock to the market, but more needs to be done to bridge the gap between the student homes available and the level we require.”
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Purpose built cardboard clad student ghettos have been really helpful in driving up student expectations and acceptance of equally high rents in proper flats much nearer to everything, university, pubs, shops etc.
Our well built Victorian flats will also still be around long after the student ghettos have been demolished.
I remember a radio programme a few years ago warning that investing in purpose built student accommodation would be the next timeshare type misselling scandal with sky high maintenance charges and limited resale opportunities, so very low yield and capital growth potential.
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