Southampton, UK

A prestigious university city with seven applicants per place.

34,000

Students across two prestigious universities

7 APPLICANTS 1 PLACE

Ratio of applicants per each university place

No HMO answer

Students are no longer able to occupy HMOs in the city

43%

Capital growth expected by 2019 – the highest in the UK

DEVELOPMENTS

SOUTHAMPTON INVESTMENT OVERVIEW: A CITY IN NEED OF A PBSA SOLUTION

Two universities and 34,000 students. Education is central to this south coast city. The University of Southampton is ranked among the best in the world. It’s a university where each place commands seven applicants. Yet Southampton is faced with a severe problem when it comes to accommodation. Less than 10,000 beds are available to students and, due to a new change in planning laws, landlords will no longer be able to use wider housing stock to house students. The result is PBSA rental premiums that continue to soar.

UNIVERSITIES ON PAR WITH THE WORLD’S BEST

Success that’s achieving global recognition. The University of Southampton is currently one of the finest institutions in the UK, and among the top 100 in the 2015/16 QS World University Rankings. Each university place is coveted by seven applicants. And with £200 million invested in the Engineering and Physical Sciences Department alone in 2015, Southampton has cemented itself as a number one choice for education for years to come.

NO OPTIONS & RISING YIELDS

A student population of 34,000 has only 10,000 student beds to choose from. Traditionally, those forced out of dedicated student accommodation turn to wider housing stock and HMOs. It’s an unsuitable solution, a means to an end. But in Southampton, the city council prohibits any new house in multiple occupation (HMO) being occupied by students. Everywhere in the UK, students are increasingly seeking experience-led PBSA, but in Southampton there is no other option – and yields will rise accordingly.

CAPITAL GROWTH 13.2% HIGHER THAN UK AVERAGE

HSBC names it among the top 10 places to invest in property in the UK, and Southampton is tipped to register the highest capital growth in the country by 2019. Real estate values in the city are set to rise 43% in the next four years, eclipsing the UK average by 13.2%. The south of England is one of the highest performing regions when it comes to price growth and, as one of its biggest cities, investment in Southampton will benefit from sustained growth for years.

SOUTHAMPTON HOUSING MARKET

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