7.5% yield in UK’s Hottest Student City
Mount Students Brings you VISTA, Sheffield
With over 60,000 students in the city and a projected yearly growth of 9%, Sheffield offers huge investment opportunities. For the 2019/20 academic year, 48% of students in the city did not have access to purpose built student accommodation.
As the city’s student population carries on growing, Mount Property Group is offering its investors its latest student accommodation proposition, VISTA, Sheffield under its Mount Students brand which is scheduled for completion in September XXX.
7.5% yield
60,000 students in the city and yearly growth of 9%
City centre location
Part of the Sheffield Hallam University Masterplan
48% of Sheffield students do not have access PBSA
The average price of a PBSA studio is £152pw
Why VISTA Sheffield?
Is now the time right for PBSA?
As developers of purpose built student accommodation (PBSA), with investors across the world, the current coronavirus crisis is undoubtedly a challenge. But although short term there will undoubtedly be some hurdles, we are confident that the investment case for student accommodation remains compelling. Whilst investors with live sites in their portfolio are feeling the pressure and financial consequences of rental breaks and refunds, we know this is a relatively short term problem and PBSA will continue to present solid investment opportunities.
We’ve broken down why we remain optimistic into these points taken from a recent report by UK property investment experts, Knight Frank which you can read here [LINK]:
[The relationship between UK economic performance and the desire to study is clear, for example, with student numbers often increasing during times of uncertainty as students look to ‘up-skill’. Between 2007 and 2010, for example, when UK economic growth contracted by 4.5%, applications to UK universities jumped by 30%
A record-breaking 39% of all 18 year olds in the UK submitted an application to start studying at UK universities in September 2019, according to data from UCAS. Increasing participation rates are just one of a host of factors underpinning the student accommodation market.
Record entry rates alongside a projected increase in the 18-year old age cohort over the next ten years will bring an estimated additional 135,000 home students.
Rental growth within the sector, for example, has averaged 4.5% over the last ten years compared to average RPI inflation of 2.8% and rental growth in the office and industrial sectors of 1.8% and 1.4% respectively (as measured by MSCI).]
Why Mount Students?
Mount Students is the student arm of Mount Property Group, a proven international property investment firm that delivers quality property investment opportunities for investors that want a hands off property investment at a competitive price that delivers optimum yield.
Mount Students creates investment assets that exceed the student customers’ expectation and delivers a premium yield for the investor.
Despite recent political changes in the UK market and an obvious immediate hit following the global coronavirus pandemic, the student market is resilient and continues to grow and driven by growing domestic and international numbers, this trend is showing no sign of slowing down in the long term.
The expectations of students has changed. They no longer want to live in shared accommodation on the outskirts of cities, they want and are willing to pay for dedicated purpose-built accommodation in the heart of their chosen city.
Mount Students’ latest investment opportunity, VISTA Sheffield, meets those needs; on the doorstep of Sheffield Hallam University and the city of Sheffield; offering investors a city centre asset that delivers 7.5% yield.
