PBSA remains resilient despite Brexit | Insight

Student

While European students will lose their home fee status and therefore pay a higher price to study in the UK, they only account for a small percentage of the overall number of students coming into the country.

Any potential shortfall should be negated by students from other countries who wish to study abroad. The UK’s popularity among students from the Far East and China is not waning.

Investors can be reassured that the purpose-built student accommodation (PBSA) market will continue to be resilient. In the past couple of years, institutional investors and funds have deployed significant capital into the PBSA sector, due to the attractive fundamentals.

In the right location, the sector can provide long-term income-generating assets that are counter-cyclical. PBSA assets also stand out due to the ability to enter the market at scale, with each scheme containing on average 246 beds. This means the sector will fundamentally remain attractive compared to other asset classes.

Add to this the anticipated return to growth of the 18-year-old population and the omens look better still. By 2030, an additional 176,000 18-year-olds could lead to spike in the number of students wanting to attend university, according to research from StuRents. In short, the UK boasts world-class higher educational institutions and will continue to remain popular.

Richard Ward, head of research, StuRents

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