Plymouth Student Property in Strong Demand Due to Low Supply
Posted: 5 February 2018
The coastal city of Plymouth has over 25,000 students attending its two prominent higher-education institutions. More than £200 million has been spent on the main Plymouth University campus, whilst Plymouth Marjon University is planning to double its student population over the next decade; as such, the demand for student property in the coming years is set to soar. However, the city is already vastly undersupplied.
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According to a report by Knight Frank, there were 20,610 students between the two universities in the 2017/18 academic year. But there were just 5,563 bed spaces available, through a combination of 9 halls of residence and 25 purpose-built student accommodation developments.
This significant shortfall left 15,047 - or 73% of the student population - unable to access accommodation designed for students. Even with Plymouth’s impressive development pipeline, some 2,471 beds under construction at the time, there would still be 13,083 students forced into HMOs which often are not equipped to meet student needs.
With both universities investing substantially into improving facilities, teaching and infrastructure, Plymouth is going above and beyond to attract more students. Meanwhile, the lack of provided student accommodation, which is unable to meet the city's rising demand, is helping to support strong rent growth; Knight Frank’s report highlights that studios in the city achieve rents between £102-£200 per week.
Purpose-built student properties present a fantastic opportunity for private student property investors. Studio developments like North East Road will be highly coveted by students, providing modern and affordable living spaces, complete with fitted kitchenettes, en-suite bathrooms, and communal areas to a student property market with an ever-growing demand.