Overseas student applications to UK institutions were affected by the Brexit vote. In this thought leadership piece, KPMG looks at the big questions facing real estate investment in student accommodation.
Applications from overseas to study in the UK have nosedived since the Brexit vote. Along with everyone else, investors in real-estate of student accommodation are being forced to re-evaluate the market. It’s a high-value industry: a rise in PBSA (purpose-built student accommodation) means private and university-owned accommodation is now worth £43 billion.
An exit from Europe would presumably mean a move from UK-level to ‘international’ tuition fees for EU students – an off-putting increase of 50%. Such fee increases could drastically decrease the UK’s desirability as a higher education destination – impacting the number of students searching for accommodation.
There are, however, positives. Some of the UK’s cities are liable to be more robust than others – Scottish universities have the advantage of a no-fee structure, Oxford and Cambridge have glowing worldwide reputations and London retains a global appeal.
Some of the key findings in our report include:
However, the sands are shifting. Developers must find new locations and react to the increase of non-EU students. Higher education has tended to be relatively recession-proof in the past – developers can help themselves with some insightful market analysis and agile movement.
To find out more, read our full Brexit and Student Housing report. (11 minute read)
Brexit: A catalyst for businesses to reset their futures.
© 2020 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.