The upcoming year promises to be challenging for purpose-built student accommodation (PBSA) and co-living/Built to Rent (BTR) operators. Government decisions affecting international students are intensifying competition for student renters. Graham Hayward, managing director at UK rental guarantor service Housing Hand, shares insights:
“Many operators are finding the current student market a little flat or slower than normal right now in terms of signing up tenancies, given all the uncertainties. These accommodation providers are seeing slower take-up levels than usual, leading many to reconsider how they can reduce their risk and get to full occupancy more rapidly – as the faster they get there, the sooner they can release cash to reinvest.”
Housing Hand collaborates with operators to achieve faster full occupancy by offering guaranteed rent. In a diversifying student accommodation market, reinvesting cash swiftly offers a significant advantage.
Rental guarantor services promote a sustainable approach to faster occupancy by enabling accommodation providers to accept a wider range of applicants. This partnership also benefits students, expanding their accommodation options. Housing Hand’s identity verification and accommodation-finding services streamline the process, reducing hassle for all involved.
According to CBRE, the UK currently faces a shortfall of 580,000 PBSA beds. Robust investment activity across the sector is expected to “further improve” in 2024, driven by “robust operational metrics and the strong return outlook.”
James Maguire, head of sales and marketing at Housing Hand, added: “In such a dynamic marketplace, we are keen to support accommodation providers with sustainable operating models.
“It makes for more stable operations and frees up cashflow faster, which is excellent news for operators seeking to attract investment. Right now, with a lot of investment interest in UK PBSA and BTR investments, and plenty of potential for growth, operators thinking longer-term have plenty to gain but they need to manage the risk, which is where Housing Hand excels.”
