Sheffield Student Property Market Overview

23rd July 2021

By Callum Ward

It’s a pretty good time to invest in property in the UK. Whether you’re a seasoned investment veteran with a sizable portfolio or a first-time investor looking to take the first step onto the investment ladder, the market conditions couldn’t be better!

When breaking the UK property market down and looking at the specific sectors throughout, one of the most surprisingly profitable investment classes throughout the pandemic was student property. Despite countless restrictions hampering student life throughout the course of the pandemic, the demand for purpose-built student accommodation has remained high, in turn maintaining the historically above average rental yields in the market.

With the market booming at the moment, we thought we’d take a look at the market as a whole, and breakdown one of the leading cities in the sector - Sheffield.

UK Student Market

As we mentioned earlier, demand for purpose-built student accommodation (PBSA) has remained high in recent times. In their UK Purpose-Built Student Accommodation Spotlight, Savills found that there has been an 8.4% increase in UCAS applications over the last year – spurred on by a 17.1% increase in applicants from foreign, non-EU countries. It’s clear to see that UK Higher Education is still a highly attractive option to global students – most of whom will need PBSA.

This increase in demand in the face of adversity over the last year and a half has resulted in a real shortage of high-quality accommodation in the market. Universities have long struggled to deal with these ever-increasing number of students in need of accommodation, which has paved the way for a drastic increase of privately owned student beds. The private sector is now home to over 50% of the student beds across the UK, all in constant demand.

The potential of PBSA has resulted in a great deal of investment in recent years in the industry. In 2020 alone, an estimated £5.77 billion was invested into the sector, with it now worth approximately £60bn. It’s easy to see why so many have invested in the industry when looking at the rental yields. Despite the turbulent year, student accommodation yields have remained stable throughout and offer a steady income stream for the long-term.

Sheffield Student Spotlight

As the PBSA market continues its impressive performance, one region that particularly stands out is Sheffield. Home to two of the UK’s leading universities in the form of the University of Sheffield and Sheffield Hallam University, the city is one of the most popular locations when it comes to higher education – with over 60,000 people currently studying in Sheffield.

One could argue that Sheffield is the ultimate student city. It benefits from a lower cost of living then most (10% lower than the country’s national average and 25% lower than the capital’s), a high employment rate for graduates, a great mix of outdoor activities as well as things like shopping malls and markets, and – most importantly – an incredible nightlife for students to enjoy. The attraction that the city has to students has only seen the demand for PBSA soar in recent times, resulting in a huge increase of investment in the area.

The South Yorkshire city has already experienced a large amount of regeneration thanks to its ‘Heart of the City’ regeneration scheme. The £130 million scheme completed in 2016 and has already seen the second phase receive funding in the hope of further improving both life in the city and the overall economy.

With this extensive growth over the last two decades, and plenty more in store for the future – Sheffield has well and truly solidified its status as a prime student location, in turn transforming into an excellent student property buy to let hotspot.

Looking to invest?

Are you interested in investing in the Sheffield PBSA market? Why not take a look at our latest development in the area, VISTA. Located withing the heart of the Sheffield Hallam Campus right in the city centre, VISTA offers an excellent investment opportunity in one of the UK’s leading cities for student property.

Comprising of 228 en-suite rooms and 13 studio apartments, VISTA will address the shortage of high-quality private student housing in the city. Prices start from £77,500 and offer an impressive 7.5% assured NET rental returns for 5 years, equating to a minimum £29,062.50 guaranteed income.

For more information on the development get in touch with us here!

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Sheffield Student Property Market Overview

23 July 2021

It’s a pretty good time to invest in property in the UK. Whether you’re a seasoned investment veteran with a sizable portfolio or a first-time investor looking to take the first step onto the investment ladder, the market conditions couldn’t be better!

When breaking the UK property market down and looking at the specific sectors throughout, one of the most surprisingly profitable investment classes throughout the pandemic was student property. Despite countless restrictions hampering student life throughout the course of the pandemic, the demand for purpose-built student accommodation has remained high, in turn maintaining the historically above average rental yields in the market.

With the market booming at the moment, we thought we’d take a look at the market as a whole, and breakdown one of the leading cities in the sector - Sheffield.

UK Student Market

As we mentioned earlier, demand for purpose-built student accommodation (PBSA) has remained high in recent times. In their UK Purpose-Built Student Accommodation Spotlight, Savills found that there has been an 8.4% increase in UCAS applications over the last year – spurred on by a 17.1% increase in applicants from foreign, non-EU countries. It’s clear to see that UK Higher Education is still a highly attractive option to global students – most of whom will need PBSA.

This increase in demand in the face of adversity over the last year and a half has resulted in a real shortage of high-quality accommodation in the market. Universities have long struggled to deal with these ever-increasing number of students in need of accommodation, which has paved the way for a drastic increase of privately owned student beds. The private sector is now home to over 50% of the student beds across the UK, all in constant demand.

The potential of PBSA has resulted in a great deal of investment in recent years in the industry. In 2020 alone, an estimated £5.77 billion was invested into the sector, with it now worth approximately £60bn. It’s easy to see why so many have invested in the industry when looking at the rental yields. Despite the turbulent year, student accommodation yields have remained stable throughout and offer a steady income stream for the long-term.

Sheffield Student Spotlight

As the PBSA market continues its impressive performance, one region that particularly stands out is Sheffield. Home to two of the UK’s leading universities in the form of the University of Sheffield and Sheffield Hallam University, the city is one of the most popular locations when it comes to higher education – with over 60,000 people currently studying in Sheffield.

One could argue that Sheffield is the ultimate student city. It benefits from a lower cost of living then most (10% lower than the country’s national average and 25% lower than the capital’s), a high employment rate for graduates, a great mix of outdoor activities as well as things like shopping malls and markets, and – most importantly – an incredible nightlife for students to enjoy. The attraction that the city has to students has only seen the demand for PBSA soar in recent times, resulting in a huge increase of investment in the area.

The South Yorkshire city has already experienced a large amount of regeneration thanks to its ‘Heart of the City’ regeneration scheme. The £130 million scheme completed in 2016 and has already seen the second phase receive funding in the hope of further improving both life in the city and the overall economy.

With this extensive growth over the last two decades, and plenty more in store for the future – Sheffield has well and truly solidified its status as a prime student location, in turn transforming into an excellent student property buy to let hotspot.

Looking to invest?

Are you interested in investing in the Sheffield PBSA market? Why not take a look at our latest development in the area, VISTA. Located withing the heart of the Sheffield Hallam Campus right in the city centre, VISTA offers an excellent investment opportunity in one of the UK’s leading cities for student property.

Comprising of 228 en-suite rooms and 13 studio apartments, VISTA will address the shortage of high-quality private student housing in the city. Prices start from £77,500 and offer an impressive 7.5% assured NET rental returns for 5 years, equating to a minimum £29,062.50 guaranteed income.

For more information on the development get in touch with us here!

Callum Ward

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