We are urging investors to consider adding student accommodation to their portfolio now more than ever, as data from StuRents, the country’s largest portal for student accommodation, forecasts that there will be a shortage of around 450,000 student beds nationally by 2025.
Investors can take advantage of a rare opportunity, as our Worcester commercial agency team launches Court Mews to the market, a high-yielding student accommodation building located in the centre of Worcester, for £3,100,000 reflecting a Net Initial Yield of 6.91 per cent and a rental income of £302,400 pa.
The property, in Farrier Street, a prominent location within the city, benefits from a strong retail, restaurant and café offering to attract students from the University of Worcester, which has recently opened its new £16 million Three Counties Medical School.
The purpose-built student accommodation building is already fully let for the next academic year and includes a total of 48 ensuite rooms, divided across six self-contained units each including a communal kitchen and lounge area.
One of our associates, Lauren Allcoat, said: “Despite the current economic uncertainty faced by the UK economy, there is little doubt that the demand for purpose-built student accommodation is growing in university cities.
“With demand for affordable student lets outstripping supply and 46 per cent of students renting from private landlords nationally, the private sector has been under significant pressure to fill the shortfall in student accommodation. Applicant numbers for undergraduate courses in September 2022 reached a new record level, with 450,000 people taking up a place at university.
“This has resulted in the demand for student accommodation skyrocketing across the UK, something which shows no sign of slowing for the 2023/24 academic year as more students than ever return to on-campus learning and normality occurring after the Covid-induced hiatus of remote study. It is therefore no wonder that investors are switching their focus to student accommodation as there is potential for significant income generation to be made owing to this growing supply-demand imbalance.
“It is also incredibly rare that purpose-built, high-yielding student accommodation comes onto the market. The picture being painted in Worcester very much mirrors the national one in terms of supply and demand, and anyone wanting to benefit from a diversified portfolio should consider the opportunities that student accommodation can offer.
“Worcester is an incredibly buoyant city, with areas across the city centre benefitting from regeneration and the university investing millions of pounds in new facilities, all of which will help to increase its student population.”
Find out more about our commercial agency consultancy services by clicking here.
