Purpose Built Student Accommodation (PBSA) continues to be one of the more resilient asset classes. While challenges exist around the provision of new developments, strong fundamentals ensure the sector remains attractive to developers, investors and lenders.
We advise over 70 universities and higher education institutions on a range of property issues, and we are in the market advising on investment transactions. Our planning and development team has secured planning permission for over 5,000 beds in recent years.
In an increasingly competitive market, universities and private PBSA operators are under pressure to upgrade the quality of their assets. Accommodation is the biggest cost for students after fees, so there is growing appetite for affordable options.
The introduction of an affordable student housing policy in the London Plan requires viability assessments required if at least 35% of the proposed accommodation is not secured as affordable. Additionally, nomination agreements are necessary for most student accommodation.
Shortages of PBSA persist across the UK, but the demand and supply dynamics vary significantly on a micro level. The removal of the student cap has seen some University towns and cities struggle to provide sufficient PBSA to meet demand. Elsewhere, a high number of developments completed in the last few years, combined with falling student numbers has led to oversupply.
Our specialist student accommodation and higher education teams work alongside our planning, development and capital markets teams to provide a full-service offering. This includes identifying new opportunities and guiding clients through all aspects of planning, viability, development, funding, valuation, asset management, acquisition and disposal.
