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Delivery Pipeline for Student Property in 2016 at the Highest Recorded Level, Says Report

The number of purpose-built beds registered to be built in 2016 is set at the highest recorded level, as a result of the student property market attracting unpreceded levels of investment in 2015, according to a new report.

Student Accommodation Hits New Peak

The number of purpose-built beds registered to be built in 2016 is set at the highest recorded level, as a result of the student property market attracting unpreceded levels of investment in 2015, according to a new report.

The report, compiled by property consultancy firm Knight Frank, assesses the outlook for the student property market in 2016 and estimated the delivery pipeline for purpose-built beds across different UK cities and regions.


According to the report, London will see the highest increase in purpose-built beds for students in 2016 across the UK with 5,082 PBSA beds projected to be built in the upcoming year – 68% of which are funded by the private sector.



However, when compared to its rising student population, the delivery pipeline projected for the capital will not significantly affect the supply demand imbalance. According to the report, London will see its structural undersupply continue, with only 1% of the captial's PBSA needs being addressed by projects being constructed in 2016 - leaving 70% of students unable to access PBSA.



Of all the regional markets, Glasgow's is the most undersupplied with 78% of students still not able to live in purpose built student accommodation by September 2016, in spite of nearly 900 beds being built this year. Other leading student cities such as Birmingham, Manchester and Cardiff are also seeing significant shortages, with more than half of all students in these locations unable to access PBSA.



Although higher availability of planning consents and the rising capital values in the sector have led to a rapid maturing of the student property market, which saw record levels of investment in 2015 as a result, there has also been a significant increase in the volume of PBSA stock. Knight Frank predicts that ‘at a macro level the market remains structurally undersupplied’ in spite of the growth in construction.


Source: Knight Frank's Student Market Review 2016

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