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UK student housing faces possible year-end downward revaluation

Bisnow reports that yields have stayed low even as interest rates rose over the past three years, leaving valuations potentially lagging behind pricing adjustments.

Reported · Written up by our desk · Residential

UK student accommodation in the UK could see another downward revaluation at year-end, according to commentary shared at Bisnow’s Student Accommodation Summit.

Bisnow reports that investors and developers are nonetheless watching for signals that the sector is nearing the bottom of its cycle, citing expectations that any discount to net asset value seen in listed owners could translate into lower year-end valuations.

The outlet also said yields in the student sector have remained low over the past three years even as interest rates increased, with JLL’s Huw Forrest noting that pricing has adjusted significantly but that the valuation impact may not yet be fully reflected.

Bisnow’s coverage emphasized that the direction of year-end valuations could be influenced by how the sector’s pricing and yield trends continue to reconcile.

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