The Student Housing

Investment Sector
Is Dominating The Market With
£1bn Of Transactions In Q1
2018

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• The student accommodation sector experienced about £1 billion of
transactions in Q1 2018.

• A few agencies in London produced their own reports with varying

levels of investment during Q1.

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
• CBRE reported £975m worth of transactions within the sector

• JLL included joint ventures in their report, pushing the figure to £1bn

• Knight Frank included JV & forward funding deals totalling to £1.2bn

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
 What Is Particularly Attractive About Purpose-Built Student
Accommodation Investment?

• PBSA is affordable, with an en-suite room reflecting a typical capital

value of £50-70k.

• The process of purchasing is quicker because investors need to be

cash-buyers.

• It has become increasingly difficult to make a profit from buy-to-let

so many first-time buyers find this sector appealing.

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
• James Pullan, head of student property for Knight Frank stated,

• “Product with affordably priced rents remain attractive to many of

the consolidators in the market who see this price-sensitive target
demographic to be fundamental to future investment performance in
a relatively volatile macro economy.”

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
 Student Accommodation Is Dominating The Construction
Market

• AMA Research suggests the Higher Education sector is dominating

the construction market with total output valued at around £3.9bn
in 2017.

• PBSA is a significant part of this growth because there is a lot of

pressure for universities to provide housing.

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
• Only about 20% of students are being housed by university-run halls
and about 1/3 of these halls were built before 1979.

• They need major upgrading and luxury, high-specification PBSA meets

the needs of modern day students.

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
 At Sterling Woodrow we specialise in helping new property
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Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
 Many thanks for your time – we hope this presentation was useful.

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