1. Stamp Duty Exemptions
Student halls are subject to non-residential rates of SDLT therefore savings investors thousands in purchase costs.
2. Recession Proof
Data has shown that a recession has resulted in additional demand for higher education. For international students, the weakening of the pound makes studying in the UK even more attractive, and affordable.
3. Further Regulation
The increased taxation and additional regulation are suppressing Houses in Multiple Occupation (HMOs) for students and has therefore supercharged the demand for purpose-built accommodation. There are 31% fewer 5+ bed properties listed for rent compared to the pre-pandemic average creating supply shortages for students and leading more to look at Purpose-Built Student Accommodation (PBSA).
4. High Retention Rates
Purpose-built accommodation generally has a higher retention rate than HMOs and is designed to encourage a sense of community making tenants likely to stay for longer. With most PBSA developments now with building management and security in place, it offers the students peace of mind and the investor a hands-off approach.
5. Stable Investment
The number of first-year undergraduate students is projected to increase, and applicants could reach 1 million by 2030 according to UCAS. The UK remains one of the key global destinations for students looking to study.
