STUDENT & PRS/BTR                             

investment

Our multi-disciplinary student accommodation and PRS/BTR team has recently advised on over £1bn of projects, ranging from Grade I listed buildings, to contemporary new build schemes.

STUDENT ACCOMMODATION

In a global market, universities now have to be even more persuasive as they compete for domestic and international students. Increased tuition fees are making British students more particular about the course/University they apply to, whilst international students pursue brand, quality and alumni recommendations.

The university estate is paramount in an applicant's decision making process, with student accommodation near the top of their priority list. With government funding cuts, universities are increasingly looking to the private sector to deliver a best-in-class experience to their customers.

Our Partner led service provides senior expertise coupled with proven problem solving and negotiation skills. With this experience comes insight, and the ability to proactively mitigate risks before they become an issue - enabling us to keep transactions on track.

Through Bidwells' boutique student accommodation and PRS/BTR team, you will have access to our multi-disciplinary service offer and our network of local agents and their local market knowledge.

 

PRS/BTR

PRS, or Build to Rent, is an emerging growth sector in the UK property market.  Due to undersupply of housing and would-be buyers being priced out of the market, many are turning to BTR.  The British Property Federation has estimated that £30bn is to be committed nationally to the sector in the next 10 years, building 150,000 homes that could house in the region of 350,000 tenants.   Figures from the latest English Housing Survey suggest that 4.4m of the 22.6m households in England (19.4%) are privately rented, up from 2.3m (11%) 10 years ago.  Almost half of all 25-34 year olds now privately rent in England though the main growth area is London with over 25% of households in the PRS. The sector makes up 17.4% and 16.3% of households in the South West and South East respectively.
 
At least 240,000 new homes need to be delivered annually to start to bring house price inflation down to a similar level as general price inflation.  Since 2008, output averages fewer than 150,000 homes annually (Source: IPF Sep 2015).  The effects are most extreme in Greater London where demand side pressures in terms of large population growth and significant overseas investor demand, have further distorted pricing. 
 
PRS enables more homes to be delivered more quickly as the pace of development is not limited by the rate at which homes can be sold. The potential quantum of development, multiplied over numerous sites, would have a meaningful impact on the UK’s housing supply problems.
 
With funds increasingly focussing on the PRS as a quick and profitable way to mitigate the housing crisis, we see this as an opportunity to take advantage of an inexperienced market with huge growth potential.
 
Major financial institutions seeking to add residential holdings require large scale lot sizes to achieve a meaningful sector allocation within their existing real estate portfolios. The majority of PRS transactions are large scale with lot sizes of £20m+.  Most funds foresee minimum economies of scale in schemes of 100+ units.

£1bn

Investment transactions since 2015

20k+

PBSA beds advised on in 2016/17

94%

Success rate when instructed to sell a property

 

 

 

 

 

 

 

GALLERY

 

CASE STUDY

VIEW OUR STUDENT PRS/BTR
CASE STUDIES

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