"Students prefer PBSAs to traditional, often substandard, landlord-run residences, resulting in a continued 'flight to excellence."
Demand for Purpose Built Student Accommodation (PBSA) continues to grow: our student beds requirement (undergraduates and post grads) is just shy of 1 million beds.
Insurance valuations
An insurance valuation is the assessment of a building’s structure and fittings to provide the reinstatement cost, i.e, how much it would cost to rebuild the building if the land it stands upon were FREE. During the buildings insurance valuation the Valuer will consider the physical size of the building, the methods used in the buildings construction and extras that would make the property cost more to build than the average build price.
Demand for UK purpose built student housing
HESA data confirms that demand for student housing in the UK continues to rise. Both undergraduate and post grad Non-EU intakes have increased which has compensated for the drop in EU intakes.
The discerning student
Students prefer purpose built student accommodation ‘PBSA’ to traditional, less well maintained private landlord-run rooms; the result is a continued 'flight to excellence.'
Domestic student demand is at an all-time high, not only is private rental sector (PRS) and HMO stock limited, but there is a clear demand preference for larger community-focussed purpose-built well-maintained stock student housing. Service-included is key, students want 24-hour on-tap lifestyle, and responsive maintenance; those that don't provide it risk losing residents
Student housing investment challenges
Where to invest: The play is to look at stock in the planning pipeline, the age of existing stock, and for cities with a strong increase in student admissions which will be suffering from high student-to-bed ratios.
PBSA is counter-cyclical: Student housing (PBSA) continues to be counter-cyclical, with student numbers increasing during economic uncertainty.
Land for PBSA development: For non-platform buyers' market concentration has reduced options and the play has shifted towards development, a need to partner with developers. Access to suitable building sites is competitive, with developers of multi-family housing and logistics often also in pursuit.
PBSA Build viability: Construction cost inflation continues to influence viability; rising material costs, energy prices and labour shortages all have played their part. Only good control over supply chains can mitigate these risks.
PBSA sector track record: The PBSA sector has a proven track record of revenue generation and a fundamentally solid demand outlook. Success will depend on an operator who is expert in running a ‘net operating income’ business model. Funds are looking for core or above-core returns, but there are few operators.
International students have historically been over-represented in the PBSA, further fuelling robust growth with strong demand continuing.
Given the increased demand for low-cost, but not for low-spec student beds, Ringley’s living sectors delivery platform Una Living has established an integrated asset, leasing and student management model. Una Living provides an end-to-end solution for asset owners, institutional investors, real estate investment managers, overseas funds, family offices, landlords in education and creates value through strategic partnerships. Our vertically integrated living sectors platform is geared to create OpEx efficiencies and to enhance the blended IRR.
Site finding:
The Underwrite:
Planning & Project Monitoring:
Management of Stabilised PBSA Stock:
Lease-up:
Mobilisation:
Our Asset Management Team
The key to our success is our people
Tier 1 cities for student housing
Tier 1 cities with strong increases in student numbers, high student-to-bed ratios, and/or restricted pipelines continue to have a high need for additional housing. Bristol has ascended to the top tier: it has a healthy pipeline, yet supply shortages mean still some students are forced to live in Bath.
PBSA List of Tier 2 Cities
Tier 1 cities with strong increases in student numbers, high student-to-bed ratios, and/or restricted pipelines continue to have a high need for additional housing. Bristol has ascended to the top tier: it has a healthy pipeline, yet supply shortages mean still some students are forced to live in Bath.