Both the Build to Rent (BtR) and purpose-built student accommodation (PBSA) sectors remain resolutely buoyant. Annual investment in UK living real estate was a record £18bn in 2022* and investor appetite shows little sign of flagging.
Investors and developers are increasingly turning their attention to the UK living sector in a less certain real estate market because of its defensive nature and resistance to economic cycles. BtR represented 35% of investment in UK living real estate in 2022, with transactions expected to accelerate again in H2 2023 (JLL). For PBSA, current occupancy is at record levels and expected to endure, delivering strong rental and income growth in turbulent period.
PBSA and BtR are emerging as resilient and attractive asset classes for investors because they:
Demand for both high-quality, professionally managed homes and student accommodation in the UK remains high, yet new supply is still not meeting demand. According to StuRents, the UK’s largest student rental service, there will be a shortfall of approx.450,000 student beds by 2025, while the UK rental shortage has been well-documented in recent years. Student accommodation accounted for 45% of investment in UK living sectors in 2022
While investor demand has slowed because of development viability against a backdrop of debt considerations and construction challenges, the market is anticipating a significant upturn in the second half of 2023. Recently, we have seen large deals and significant market activity, such as GIC and Greystar’s recent acquisition of Student Roost, driving current and future activity.
We are actively hiring senior, leadership roles as our clients across the living sector seek experienced c-level executives to pilot this next stage of growth. Please do get in touch if you would like to discuss shaping your recruitment strategy.