Purpose-built student accommodations (PBSA) have become an integral part of city centres and university campuses across the nation. They house hundreds of thousands of students annually, and demand continues to rise for these properties.
Like most buildings and developments, valuations are a critical consideration for investors and consultants. They help show key stakeholders the full picture of the costs involved and the profit potential for each property. However, these structures are unlike standard residential or commercial properties, meaning they require a specialist valuation.
Our expert team have a proven track record in conducting these appraisals, and we are here to provide this service for you too. Contact us now if you have any questions or want to arrange a valuation.
What are purpose-built student accommodations?
A purpose-built student accommodation is exactly what it says on the tin; it is housing designed specifically for those attending UK-based higher education institutions. You will usually find these near universities and colleges or in city centres.
PBSAs are designed to provide students with high-quality living spaces, opportunities to socialise with like-minded individuals, easy commutes to classes, and the security needed to make them feel safe while studying.
Why do PBSAs need specialist valuations?
A specialist valuation is required for a purpose-built student accommodation because it behaves differently from traditional residential and commercial property for the following reasons:
- Income can depend on the university or college timetables
- Occupancy risk is unique, with pre-letting rates and drop-outs being major considerations
- Pricing can be based on operational performance, such as management efficiency and staff costs
- Income from international students depends on government visa policies and trends
- Construction and fit-outs are non-standard, and may require specialist developers who charge a premium for projects
When would I need a PBSA valuation?
Loan security and borrowing
Typically, some form of loan will be required to finance the purchase or development of a purpose-built student accommodation. Lenders require a valuation to determine the property’s true market value and income-generating potential, allowing them to assess risk, set borrowing terms, and select an appropriate loan-to-value ratio.
Sales and acquisitions
Valuations are essential during a PBSA purchase or sale, as they allow both buyers and sellers to understand the true market value when entering negotiations, ultimately providing greater peace of mind for all parties.
Insurance purposes
An insurance valuation is often required to determine the correct reinstatement cost for the PBSA. The appraisal helps ensure the property is neither under- nor over-insured, protecting you against financial loss in the event of damage, fire or other insured incidents.
How do I arrange a valuation for a purpose-built student accommodation?
Arranging a purpose-built student accommodation valuation is simple when you choose Eddisons as your partner. Just complete our contact form, and a member of our business development team will assess your requirements.
Your enquiry will then be passed on to the relevant RICS-certified valuer in your area, who will provide a quote and estimated completion date. If you decide to proceed, we will carry out our inspection and send you a detailed report to support your PBSA decisions.
Why should I use Eddisons for a PBSA valuation?
We are well-placed to provide detailed and accurate purpose-built student accommodation valuation reports. Our team is RICS-certified and has significant experience in PBSA appraisals, with some senior figures valuing some in excess of £4 million.
Our services are reviewed positively too, and we have a nationwide presence to ensure you have specialists with knowledge of your local area. We can also support your other needs, with our building consultancy team ready to assist with project delivery.
Discuss your purpose-built student accommodation valuation needs with us
Utilise our tailored PBSA valuation service today. Get started by completing the form below, and a member of our team will be on hand to assist you. You can also read our valuation case studies, in the meantime, to see how we have assisted other clients in the past.
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