Yes, and we would suggest an approximate figure of 3.5% - 4.5% per annum, which is closely aligned to the annual increase in student rental fees. However, more recent reports have stated that the growing structural imbalance between student property supply and demand is likely to see the rate of capital appreciation increase up to 5% in 2023 (for further details, please see Knight Frank Student Housing Report - February 2023).
It will always be difficult to predict future capital appreciation of student properties, however the increasing number of private landlords (typically HMO’s) who are leaving the sector is likely to place more upwards pressure on PBSA prices due to the lack of availability and alternatives in the short to medium term.
In recent months (since the beginning of 2023), we have actually seen a considerable increase in the weekly rental fees being paid by students for the new academic year (annual tenancies commencing September/October 2023). From speaking with the numerous student management companies, these increases seem to be consistent, and both in England and Scotland. We feel this is a result of the high number of private landlords who are withdrawing from the student sector, resulting in extremely high demand for student accommodation in the major university towns and cities.