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Fifth Consecutive Year of Rental Growth for Student Property

The student accommodation sector saw another consecutive year of rental growth in 2016, according to new figures.

Student Accommodation Sees Fifth Consecutive Year of Rental Growth

The student accommodation sector saw another consecutive year of rental growth in 2016, according to new figures.

Rents for student tenants have soared to an average of £143 per week by the end of last year, increasing from the £120 average seen five years ago, revealed property consultancy Knight Frank.

Driven by an increase in demand from UK and overseas students, the firm announced that occupancy levels in purpose-built student accommodation (PBSA) have more than doubled since 2007.


According to the figures, in fact, PBSA is one of a select number of UK property asset classes to have achieved positive rental growth every year since 2007.


PBSA’s rising popularity, across students and investors alike, has been attributed to the sector’s organic growth; with the student market seeing the introduction of new high specification properties designed to meet all student requirements.


Commenting on PBSA’s substantial rental growth, James Pullan, head of student property at Knight Frank, highlighted the asset class’ ability to remain a non-cyclical investment as one of its greatest strengths.


Mr Pullan said: ‘The importance of higher education remains unaffected by the tumult of economic cycles.’


Currently, the purpose-built student accommodation market in the UK is valued at a total of £42.3bn – including both private sector and university assets. According to current projections, based on the present level of investment and construction occurring within student property, the asset class is expected to be worth a total of £50bn by 2020.


Last year, the student accommodation sector generated an estimated £3.1bn in transactions, according to research conducting by property firm Cushman & Wakefield

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