PBSA market to hit £50bn by 2020

The purpose-built student accommodation sector in the UK could be worth £50bn by 2020. According to a new report by Knight Frank, the current PBSA market is comprised of assets with an estimated value of £42.3bn including both private sector PBSA and university-maintained PBSA. The current level of investment and construction activity in this sector indicates that by 2020 the value will grow to £50bn. The number of full-time students in private sector PBSA has more than doubled since 2007, a rise of 155%. The average weekly rent for en-suite accommodation across the UK has climbed from £120 to £143 over the last five years, underpinned by an annual growth in rents as well as the organic growth of the sector, including the introduction of new, higher specification student property into the market. Since 2007/08 the increase in the number of international students in the UK has averaged 4.9% per year. Demand for private sector PBSA among students increased by 155% between 2007/08 and 2014/15 while non-PBSA demand grew by 26% and university maintained PBSA demand grew by 5% James Pullan, head of student accommodation at Knight Frank, said: “The importance of higher education remains unaffected by the tumult of economic cycles.” • To send feedback, e-mail amber.rolt@estatesgazette.com or tweet @amberrolt or @estatesgazette