Why fixing the student housing crisis means investing in HMOs too | Property Week

The student housing crisis, highlighted by StuRents' data indicating a 283,000 supply shortfall in both purpose-built student accommodation (PBSA) and houses in multiple occupation (HMO), poses a threat to the UK's global academic standing. Moorfield's head of ESG, special projects, and legal at Moorfield Group, Sadie Malim, emphasises the critical role of institutional capital in addressing this crisis, pointing out that the £7.2bn invested in UK PBSA last year by insurers, pension funds, and sovereign wealth funds demonstrates the sector's attractiveness for long-term, risk-adjusted, and inflation-linked income streams. Malim argues that the HMO market, often overlooked but housing almost 30% of all UK students privately renting, provides a compelling investment opportunity. Investing in existing housing stock allows for resilient income streams, green building upgrades, and opportunities for ESG-focused investment and asset management strategies. The Renters Reform Bill, recognising the importance of fixed-term tenancies, is seen as a positive step but requires ongoing collaboration between the government and industry to address potential pitfalls and ensure better-quality homes for students.

This collaboration is crucial to navigate challenges posed by the Renters Reform Bill, ensuring that proposals are revisited, and potential negative impacts on the supply and livelihoods of students are carefully considered. Malim stresses the untapped potential of institutional capital in delivering high-quality student homes, contributing to a positive societal benefit and raising management standards in a sector that has implications for the country's competitive edge, particularly post-Brexit. The call is for a collaborative approach between the government and the industry to fix the multi-dimensional housing crisis, recognising the role of institutional capital in delivering better-quality homes in the student housing sector and beyond.

Read the full article on Property Week.