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 our latest PBSA report.
To get your complimentary copy, just click below…