Stuart Williamson’s Post

This is VERY interesting! Students at Russell Group of Universities are less satisfied with their university experience than at other universities... How much does accommodation affordability play a part? Times Higher Education has recently published it's 2024 Student Satisfaction Survey. The results should ring alarm bells for unviersities and local authorities with falling satisfaction and rising rents. The University of Sheffield is the highest scoring RG university. It's also one of the cheapest for accommodation because Sheffield City Council opened the floodgates to PBSA developers around 5 years ago. I look down this list and these are ALL universities where the cost of student accommodation in particular is reasonable compared to the likes of Bristol, Exeter, Durham, Edinburgh and Glasgow which are way down the list of student satisfaction and have the highest rents in the UK. Some notable cities where there is reasonably affordable PBSA stock include: Lincoln (# 1), Plymouth, Liverpool, Wrexham, Sunderland, Sheffield, London (outskirts), Cardiff, Aberystwyth. #pbsa #intled #studentaccommodation #highered #studenthousing #studentsatisfaction #housing #students

Market Demand and Drivers for PBSA Growing Student Population:  The UK remains a top destination for higher education, attracting both domestic and international students. According to data from Universities UK, there were over 605,000 international students in the UK during the 2021/22 academic year, contributing significantly to the demand for student accommodation. Shortage of Quality Student Housing:  Despite the large student population, traditional university halls and privately rented housing often do not meet modern students' expectations for quality and facilities. PBSA offers a more attractive, purpose-built alternative that meets these higher standards. Changing Student Preferences:  Students today prefer accommodations that provide convenience, safety, and a sense of community. PBSA developments often come with amenities like 24/7 security, study areas, communal lounges, and organized social events, making them more appealing. #pbsa #investment #propertyinvestment #purposebuiltstudentaccommodation

Good to be at the Student Housing Conference today hosted by LD Events. Overall, a more positive than negative tone, with some interesting takeaways: 🏢Unsurprisingly, the cost of finance, build costs & planning red tape are the leading challenges for development in the student sector. 📈Rental growth remains high in some locations . Newcastle, for example, is showing an increase in advertised PBSA rents of 24% from 23/24 to 24/25!! ⚖️ Affordability is a recurring theme and number 1 challenge for students . 50% of applicants to HE state housing availability influences their decision on where to study . 💵 In 2023, more than 55% of students were in paid employment, compared to 35% in 2015, showing how more students are offsetting costs by working in tandem with their studies . 🇬🇧 The net benefit to the Exchequer of International students is £70m & International students play an important role in the sustainability of Universities. With UCAS predicting up to 1m new HE students in 2030, student housing will continue to attract players to the sector due to the growth potential. However, affordability is a major concern that must be unpicked for a healthy and sustainable market.

𝑻𝒉𝒆 𝒈𝒂𝒑 𝒃𝒆𝒕𝒘𝒆𝒆𝒏 𝒔𝒕𝒖𝒅𝒆𝒏𝒕 𝒂𝒄𝒄𝒐𝒎𝒎𝒐𝒅𝒂𝒕𝒊𝒐𝒏 𝒈𝒖𝒂𝒓𝒂𝒏𝒕𝒆𝒆𝒔 𝒂𝒏𝒅 𝒂𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆 𝑷𝒖𝒓𝒑𝒐𝒔𝒆-𝑩𝒖𝒊𝒍𝒕 𝑺𝒕𝒖𝒅𝒆𝒏𝒕 𝑨𝒄𝒄𝒐𝒎𝒎𝒐𝒅𝒂𝒕𝒊𝒐𝒏 (𝑷𝑩𝑺𝑨) 𝒉𝒊𝒈𝒉𝒍𝒊𝒈𝒉𝒕𝒔 𝒂 𝒄𝒓𝒊𝒕𝒊𝒄𝒂𝒍 𝒊𝒔𝒔𝒖𝒆. While 3,100 𝐚𝐟𝐟𝐨𝐫𝐝𝐚𝐛𝐥𝐞 𝐛𝐞𝐝𝐬 have been consented post-Plan, 2,300 𝐛𝐞𝐝𝐬 are still awaiting a decision. At the same time, 111,000 𝐬𝐭𝐮𝐝𝐞𝐧𝐭𝐬 are guaranteed accommodation, far exceeding the current PBSA availability. Dive into our report for an in-depth analysis of these figures and what they mean for the future of student housing. 𝐃𝐨𝐰𝐧𝐥𝐨𝐚𝐝 𝐭𝐡𝐞 𝐟𝐮𝐥𝐥 𝐫𝐞𝐩𝐨𝐫𝐭 𝐡𝐞𝐫𝐞: https://lnkd.in/gpi9KH8u #StudentHousingCrisis #PBSAGap #StudentAccommodation #LondonPlan2024 #HousingShortage #StudentLife #PurposeBuiltStudentAccommodation #HigherEdHousing

The two major Scottish university cities are the least likely to meet international student demand. Our research team looked at the student-to-bed ratio for major UK university cities. The student-to-bed ratio is a frequently used metric in the UK student accommodation market, defining the balance between enrolled students and available PBSA beds. However, the student-to-bed ratio solely focuses on PBSA and disregards housing options provided by HMOs. HMOs constitute a significant proportion of supply in many towns and cities, and overlooking this segment can lead to an incomplete understanding of the overall supply-demand dynamics. Secondly, the student-to-bed ratio assumes uniform access and affordable private PBSA accommodation for all students. This assumption neglects many students' financial constraints, particularly domestic students, who may find purpose-built student accommodation relatively unaffordable. So, with domestic affordability and the HMO market in mind, by excluding the domestic market entirely, this international-only student-to-bed ratio offers a fresh insight into the conventional metric, providing a more detailed examination of international demand at a city level. #studentaccommodation #studenthousing #pbsa #hmo #internationalstudents #edinburgh #glasgow

The most bizarre part of the Proposed Framework is this: 'Government will allow universities to enrol additional students above their international student profile where the university establishes additional, newly built supply of purpose-built student accommodation.' While I'm a huge fan of PBSA as a best practice approach to student accommodation, this condition is fairly bizarre. - PBSA is a premium offering (most of the time). Lots students can't afford it and won't stay there, even if it's available. Is the Fed Govt going to ban some students from private rentals if they're over a uni's cap amount? What the? - It's not that easy to just 'establish additional supply'. Every council and state govt has all kinds of red tape to overcome. - It takes ages to build one of these buildings and tens of millions of dollars. That's why the private sector has to seek institutional investors to bankroll them. The idea that a university is going to start competing with them is, quite frankly, madness. - There's simply not enough PBSA beds in the pipeline, and the Govt has known that for years. Which makes me think this statement is just a blame shifting exercise back to the unis. PBSA makes up about 15-20% of the current accommodation available to international students. Current projections are that by 2026, only 7760 PBSA beds will be added to the 80,000 or so PBSA beds in Australia. That's not a lot. That sector is already trying to build at an insane pace to keep up. Don't get me wrong. I would love to see more PBSAs. But by relying on this one class of accommodation to house students above a cap.. well, it's not that simple!

How can we tempt domestic students from the HMO Market to PBSA? Traditionally it has been the same for years, domestic students will spend year one in halls and then move into the HMO and PRS market. So is just affordability that prevents PBSA from cornering the market with Domestic students, is HMO living seen as a right of passage, or could it just be that we are not getting the right marketing message to domestic students? Looking at property portals in Manchester, there are PBSA rooms in the city centre, on the Oxford Road corridor 5/ 10 minute walk from University starting at £135 pp in a 4 bed cluster with shared bathroom and kitchen. On the HMO market there is an 8 bedroom , 2 bathrooms house at £140 pp a week including bills. Sounds comparable right? There are now HMO rooms in MCR at up to £180, which is closing the gap to the lower end of the PBSA market. The quality at the higher end of the HMO market is much higher now than ever but still HMO tenants are missing out on; 🏚 On site security 🤝 Pastoral care 🎂 Student experience 💸 Bills inclusive as standard 📄 Flexible lease terms – some still insist on 52 week tenancies 🏘 Individual tenancies – many still asking for joint and several AST’s That’s not starting on the amenities available in the higher end PBSA stock. No doubt we need more affordable PBSA, but is price going to be enough to tempt our students away from HMO? Do we need to rethink our marketing to better compete with the HMO experience? Derwent FM Derwent Students #propertymanagent #pbsa #student

IPE Real Assets: PGIM Real Estate, a major investor in real estate, recently bought a group of six student housing buildings in the UK from Unite Group. The real estate manager has invested an undisclosed amount on behalf of its European core-plus strategy to buy the purpose-built student accommodation (PBSA) properties, comprising 3,000 beds in Birmingham, Cardiff, Leicester, Liverpool, Nottingham and Sheffield. "In the current market environment, it’s rare to find a stabilised portfolio with high-quality yielding assets located in key regional cities. We believe the UK PBSA sector has strong underlying fundamentals as demand for student housing is only set to increase with more students applying for university.” - Tobias Waldschmidt, Senior Portfolio Manager, PGIM Real Estate. #QIP #UK #pbsa #realestate #privateequity #livingsector #alternativeinvestments

Will Nottingham's HMO's Survive PBSA's??? After A-level results day and the clearing process, many landlords and estate agents are facing a daunting reality: the influx of new PBSA units is significantly impacting their HMO rental market certainty. Nottingham's student housing market is undergoing a significant transformation, driven primarily by the rapid development of Purpose-Built Student Accommodation (PBSA). According to recent data, there are approximately 8,500 PBSA bed spaces planned or likely to be approved, with an expected delivery of around 3,000 bed spaces in 2024/25 and over 5,000 bed spaces in 2025/26 (Student Accommodation in Nottingham, Nottingham City Council 2024 January) . This surge in PBSA supply has several implications for the HMO market: Increased Competition: HMO landlords will face increased competition from PBSA providers, which often offer modern amenities, dedicated facilities, Prime locations, and professional management. Shift in Student Preferences: Many students are increasingly attracted to the convenience, security, and social aspects of PBSA. Potential for Overhang: If the pace of PBSA development outstrips student demand, there could be a risk of an oversupply, leading to lower occupancy rates and reduced rental income for HMO landlords which is what we are starting to see now. Let me know your thoughts??? #HMO #Nottingham #PropertyInvestment #StudentAccommodation #Landlord #EstateAgent #HousingMarket

There is still a strong need for Purpose-Built Student Accommodation (PBSA) in the UK, as shown by the number of applications to universities. June’s application data from UCAS is now available, marking an important point before the academic year begins. The only stages left are clearing and adjustment after A-Level results. This data serves as the most current indicator of student interest for the coming autumn term. This year, application numbers have fallen by 1.6% compared to 2023. However, they are still 3% higher than in 2019. This suggests that, although the post-pandemic increase in student applications has lessened, the demand is still strong. This is good news for PBSA occupancy for the next academic year. Read more: