Student property has long been a favourite among investors, but the landscape is shifting. Today’s purpose-built student accommodation (PBSA) investors are becoming laser-focused on yield, rather than just long-term capital appreciation.
We spoke to a recent PBSA tenant who shared their experience of modern student housing and why demand isn’t going anywhere.
“What surprised me most was how much more students are expecting. Fast Wi-Fi, private bathrooms, gym access — it’s become the norm. Everyone I know wants that, and they’re willing to pay a bit more for it, especially when it’s close to campus.”
A new opportunity for investors
This evolving demand is creating new opportunities for investors. Cities with expanding student populations and a shortage of high-quality PBSA are offering some of the strongest yields in the property sector.
Yields of 6-8% are not uncommon in high-demand locations like Sheffield, Liverpool, and Nottingham, especially in developments that prioritise amenities and community features.
Birchmore’s investment team notes: “There’s a clear upward trend in student demand in several UK cities. Investors who keep an eye on local university growth and PBSA availability are in a great position to benefit from this resilient and recession-proof market.”
Ultimately, PBSA is about consistent, predictable returns, and for investors who value cashflow, it remains one of the most attractive asset classes on the table.
