The Purpose-Built Student Accommodation (PBSA) industry is growing, which is great news for students up and down the UK. Indeed, research shows that for students choosing to live PBSA, they’re more likely to note a higher academic performance and personal well-being, when compared with other housing options.
However, the PBSA also has broader benefits across the UK’s economy. The after care and ongoing maintenance needs of these blocks and buildings provide a wealth of opportunities for other businesses, such as service providers and maintenance engineers.
PBSA continues to attract investment
According to upmarket property management business, Knight Frank, the UK’s PBSA industry is now second only to the US. After investment hitting a fresh record high of around £13.4 billion ($16.3 billion) in 2018, the total PBSA sector in the UK is now valued at some £53.3 billion ($65 billion).
That means investors who want to find the right vehicle for their money are increasingly impressed with the potential returns on offer from the UK’s still expanding purpose-built student accommodation industry.
When that money is invested into real assets like property, it benefits the economy as it helps boost:
- Spending.
- Development.
- The UK’s student population.
- Local economies from the initial construction phase right through to when students live there.
That all adds up to a welcome lift for the UK’s economy, on a local and national basis. But, while it’s great to see how investment into the sector helps different areas of the UK, we can also take a look at specific, smaller industries that benefit from the PBSA.
PBSA management and upkeep wins
When you construct a residential block that’s purpose-built for student accommodation, the investment doesn’t end there. Through the rent received from the students who live there, much of those funds must be spent on the management and upkeep of the blocks to ensure they remain desirable and comfortable places for students to live in, year-after-year.
As the PBSA industry grows, so is the provision of services and facilities management. Indeed, when a new block is completed, the owners of that block must ensure the right companies are engaged to ensure the building is well-maintained and managed. This will help keep the students happy with the student home they’re paying to live in and also helps keep the buildings in the best condition today and in years to come.
B38 Group is one company that has grown in tandem with the PBSA industry, after opening for business in 2011. The UK business has recently won a contract to provide facilities management at a new student accommodation block in Aberdeen. The company offers a range of services that are required by the PBSA and will ensure the building is running smoothly while also responding to any calls and reports of problems relating to the following areas of the building:
- Mechanical.
- Engineering.
- Heating.
- Ventilation.
- Air conditioning.
Other industries that are essential to the long-term health and success of the PBSA include businesses that undertake refurbishment projects.
Clark Contracts is another UK company, but this one has been in operation for over 40 years. The growth of the student accommodation market is something that has allowed the firm to remain relevant as it has recently completed the refurbishment of a number of student flats in Glasgow.
As you can see, while the PBSA is an important industry for the UK’s Universities and students, it’s also one that can have a much wider, positive impact for the UK’s workforce and economy.
