Both international and UK investor appetite is robust but the purpose-built sector faces increasing challenges to ensure housing remains competitive against a backdrop of increasing operational costs and student expectations from their accommodation.
Rising numbers of university students and a lack of supply of student beds demonstrates the continued demand for student accommodation. Historically PBSA models were perceived as expensive, particularly when compared to the private rented sector. However with the cost of living crisis now at the forefront of many students (and their family's) minds, particularly around the uncertainty of rent and utility cost inflation, fixed cost models are proving to be very attractive and demand is expected to increase.
Investor and lender appetite remains active and the overall expectation is that the sector will see continued growth and opportunities in the coming years.
Our dedicated team at Howard Kennedy are invested in understanding our PBSA clients business needs and work to provide strategic advice on opportunities and challenges that the sector presents.
The team acts for a wide range of clients in the sector including developers, investors, lenders, contractors, purchasers and sellers and consequently are well versed in understanding the needs and concerns each party faces. This broad knowledge allows the team to deliver strategic, commercial and pragmatic advice which aligns to the interests of the client, as well as anticipating early on the position of the parties involved and provide solutions to possible issues which may arise. It also enables us to respond quickly to the changing regulatory environment, particularly around building regulations, planning, energy and sustainability.
We also have experience of dealing with both domestic and international clients and have worked on several cross-border transactions in the sector.
For further information on how our team can assist please see below: