This year the Student Accommodation Annual Report reveals the purpose-built student accommodation (PBSA) market has been remarkably resilient over the last year despite the shadow of COVID-19, as the number of new beds increases, and the development pipeline remains strong.
- There are now 681,000 student accommodation beds across the UK, with 24,799 entering the market for the 2020/21 academic year, a net increase of 21,000
- A record 25% of direct-let beds offered discounts or incentives as impact of COVID-19 was felt, demonstrating the flexibility of providers during this period
- Quality continues to be a key priority with the price of a new university en-suite bed 17% higher than in 2019/20
- 115,000 beds are in the development pipeline, approximately 58% of these have full planning permission
Overall, the future for the purpose-built student accommodation is bright as the UK’s position as an academic powerhouse is set to outlive any pandemic uncertainties. The sector itself is now worth around £60 billion and remains the go-to alternative asset of choice for investors.
The mid-term attractiveness will be driven by the “return to normal” and the UK’s continued reputation as a global powerhouse.
Download the report to find out more about the student accommodation sector. If you would like to discuss any aspect of the report findings, please contact one of the team.