The student letting market is thriving. Even though student accommodation occupancy levels were unavoidably hit by the pandemic, Unite Students, the largest operator of purpose-built student accommodation (PBSA) in the UK, still reported 88% occupancy for 2020-21 and 94% occupancy for 2021-22, with rental growth of 2.3%.
In 2020, around 60% of investment into single PBSA assets came from overseas investors, demonstrating that international confidence in UK higher education remains high. And university applications for the 2022/23 academic year are up 7% on pre-pandemic levels, meaning demand for student accommodation isn’t going anywhere!
Many students are attracted by the modern, purpose-built en-suite rooms and bedsits offered by PBSA, which are generally situated in luxury city centre buildings and often come with on-site amenities, such as a coffee shop, gym and laundry facilities. For landlords, the companies that operate these developments sometimes offer an attractive hands-off investment opportunity, with a dedicated management company for the building.
What do students want from their accommodation?
They are likely to be more attracted to an eco-friendly, energy efficient home, so look at installing things like renewable heating sources, a smart meter, low-energy lighting, water-saving toilets and shower heads – and make sure there’s somewhere to store recycling. If the property has a garden, have a composting unit and somewhere tenants can grow their own vegetables and herbs if they wish.
In terms of fittings and furnishings, students will expect a good quality, modern interior that’s easy to keep clean. So choose sleek, unfussy units and fittings, and tile the kitchen floor and the bathroom floor and walls. If you’re able to provide en-suites, students will appreciate that and will generally be prepared to pay more for those rooms.
Make sure the beds have decent mattresses and, if there’s space, put a desk in the bedrooms so the tenants can study in peace. And don’t scrimp on appliances – today’s student tenants will expect a dishwasher, large fridge/freezer, microwave, washing machine and a smart TV for the communal living room.
Bear in mind that students will have a preference for certain areas and even specific roads, so speak to the university accommodation office and ourselves to find out what those locations are. If you buy in the wrong place, you could end up with very low demand and that could ruin your investment plans, so make sure you do plenty of research, which we will be happy to help with.
If you’d like to discuss the demand for student housing in your area or have any other questions about letting to students, just Contact your JWW Branch and one of the team will be very happy to help.
