Purpose built Student Accommodation (PBSA) in the UK remains an incredibly popular asset class for a whole host of reasons.
When it comes to looking for reliable growth and passive income through property, fully-managed student property is hard to beat.
Here are 9 fascinating facts about student property!
Did you know that ...
- It's Big Business. In 2015, a massive £5.1b's worth of PBSA transactions took place - the largest yearly figure ever.
- It's Popular. Just over 49,000 PBSA beds were bought and sold last year.
- The Big Boys are playing. Nearly half of these were bought by institutions, including major pension funds such as Aviva and BlackRock.
- If a certain brewery built property, it would be this. PBSA has again outperformed all traditional property classes.
- Students are in love. PBSA is more popular with students than ever before, and this is set to continue
- It can be T.A.X Friendly. Most Purpose-built student property is exempted by HMRC from capital gains tax (but seek professional tax advice to confirm for your situation)
- More buyers love second-hand. With increasing yields (average rent in 2015 was up by 3.64% - well above inflation), the resale secondary market is becoming lucrative. Some buyers are prepared to pay a premium for PBSA blocks with years of trading history.
- It's still growing. Growth is set to continue, with growth outside London expected to be greatest.
- There's a "Brexit Bonus". With a lower £ following the Brexit decision, the overseas student market could be set to enjoy another further boost in the medium term. PBSA is even more popular with non-UK students so demand could see another further shift from traditional privately let shared houses (HMO) and university-owned accommodation.
If large institutions such as Aviva are buying PBSA for their managed funds, it may be worth considering taking a leaf out of their book? Especially when individual student suites can be owned for less than a deposit on some city centre apartments.
Discover more facts and figures in the latest PBSA report from Knight-Frank, including some expected PBSA UK hotspots.
To get your complimentary copy, just click the link below.
What do you think of the report contents? Post your thoughts below, we'd love to discuss!