In the academic year 2015/2016, there were approximately 2.3 million students studying in UK higher education institutions. Many students find when they enter university that affordable purpose-built student accommodation is a rarity. According to Savills, 74,500 new beds were provided by the private sector at the start of the academic year in 2015; however, a persistent shortage of demand still remains. This shortage in the market has resulted in investment offerings of ‘student-only’ accommodation in the Real Estate sector with specialised funds like the Victus European Student Accommodation Fund and the Unite UK Student Accommodation Fund. These funds specifically target the development of purpose built student accommodation (PBSA) – leading to a whole new asset class for investors.
