Showing yet again that the property market is withstanding the economic uncertainty surrounding the Brexit negotiations, the student housing market in particular is booming.
JLL (corporate investment property experts) predict that the student housing market will account for £1 in every single £10 invested in commercial property by the end of the year.
Student trend replicated in south
Figures and projections show that this student housing investment trend is echoed strongly along the south coast of the UK. Thanks to growth plans from major Higher Education institutions, demand for student housing is rocketing.
For example, the University of Southampton is rapidly expanding, leading to a growth in PBSA (purpose built student accommodation) developments and investment in existing stock.
Private rentals increasing
As well as the student housing boom, Southampton is also seeing a rise in private rented sector (PRS) and co-living housing developments. Investors are buying blocks of property in order to buy-to-let the stock to students and private renters. In doing so, they’re benefiting from rise sin rent and value.
Major cities across the UK have seen this surge in the student housing sector, but it was previously concentrated in the largest. Places like Bristol and London have seen investors snapping up plenty of student accommodation. The rise in investment in smaller regional cities like Southampton show that it’s an enduring and growing trend.
Part of the reason for this upward student housing investment trend is the decision made by the government that resulted in restrictions on student numbers being lifted. This has allowed universities to hugely expand their plans to attract more students, and there has been a rise since 2016 of more than 2% in applicants from overseas (outside the EU).
The accompanying massive increase in student fees has also helped to fuel huge investment across this sector. All five main universities in the south of the UK have experienced similar surges in student housing – these are in Bournemouth, Portsmouth, two in Southampton and Chichester.
JLL also predicted that there will be a seismic change in the way new property along the south coast will be built over the next ten years. They believe that new homes will increasingly be produced by modular building.
The UK’s construction landscape is rapidly changing, and modular buildings are becoming more popular with contractors, developers and architects. They are revolutionising the way that houses are built in this country.
Why choose modular building?
Modular buildings (also called prefabricated buildings) are constructed from multiple pre-made sections, called modules. Each module is made in a factory before being taken to the building site where they’re connected and assembled to create the final structure.
They’re made with traditional building materials, such as wood, steel and concrete. While this form of building might conjure up ideas of temporary structures, its practical uses stretch far beyond this.
Where can modular building be used?
Modular building can be used to effectively and economically construct long term and permanent buildings across a range of different sectors, including housing, hotels and industrial facilities.
They’re cheaper to construct, much faster to build, environmentally sounder and can be reused and repurposed in many cases. Expect to see many more in new developments across the UK, and along the south coast.