It's an area that is now attracting increasing attention from fund managers looking to diversify their portfolios. In fact, a record £5bn was invested in the sector last year, representing a hefty 67 per cent increase in only three years. It's not difficult to understand why given that UK PBSA offers an above-average yield profile compared with other mainstream property asset classes; strong and stable performance both in terms of investment yield and occupancy levels; and a relatively low-risk income stream with the ability to capture annual rental growth.
It also helps that the UK higher education sector is held in high regard overseas, being a top three destination for overseas students. This 'pull factor' is supportive of the attractive supply and demand dynamics of a growing student population as is the fact that English is the dominant international business language, an important consideration for emerging middle classes in countries such as India and China. The figures back this up as overseas student numbers rose from 15.4 per cent of the total UK university intake in the 2008-09 academic year to 18.9 per cent in 2013-14.