Student accommodation development finance lenders
Student accommodation investment is still something of a niche asset class investment, however, it’s extremely profitable and popular too, and so we have a panel of lenders that are keen for more exposure to this lucrative section of the UK property market.
Student numbers are growing in the UK every year, and the yields on student accommodation are very lucrative, not to mention the disparity between supply and demand, creating a push in profits.
With that in mind, we’ve managed to put together a diverse and positive panel of lenders that you won’t be able to access via traditional methods, with foreign banks, pension funds and private investors all in our panel of lenders happy to lend on the right project.
As with most asset classes and property finance, there will be some paperwork and administration. What exactly you’re asked for will depend on your circumstances, your history and the type of project you’re looking to have funded.
Broadly speaking, you can expect to be asked to provide proof of ID, proof of address and proof of income. If you have existing properties that you rent out or receive an income for, you may be asked to provide proof of your rental income and any previous projects that you’ve completed.
If you’d like more details about what kind of information you may need to provide, it’s worth speaking to one of our senior brokers about it so they can give you some more details.
What is a PBSA Scheme?
PBSA is an acronym for Purpose Built Student Accommodation and is used to described projects where student accommodation is purpose built from scratch, usually in the form of apartments.
Many developers will take larger commercial buildings and convert them specifically into student apartments, exclusively renting them out to university students. Whilst they’re not occupied for the full year, the rents than can be collected on these apartments are higher than if they were converted into residential apartments.
They’re usually contained into one building, with all of these apartments used for students, and this gives the name ‘purpose built’.
Are student accommodations a good investment?
As with any type of investment, caution should be exercised, and no investment is guaranteed to increase in value, however, in the scheme of things, student accommodation has proven to be a great investment over recent years.
As we mentioned above, the demand for this type of asset class has been rising for years, with student numbers increasing year-on-year with millions wanting to attend UK universities in urban centres that are struggling to keep up with housing demand as it is.
As in any basic economics, an excess of demand with a shortage of supply drives price and scarcity, and so landlords and investors who are into this asset class are in a strong position to command great rents and yields, and occupancy rates for this type of asset class are some of the best in property.
Yields, capital appreciation, and rental growth are all very healthy in this type of property investment, so contextually speaking, yes, as a property investment it has proved to be a good investment in recent years.
Speak to us about student accommodation development finance today
If student accommodation finance is something that you’ve been thinking about or something you’re interested in, we have an experienced and friendly team waiting to speak to you and give you more information.
They’ll take some details to understand your situation more, and then provide you with all the advice you need before you make a decision, so why not get in touch today?