We are strong believers in the residential market in the UK especially in affordable housing, student and retirement housing – Paul Bashir, COO, Round Hill Capital

Blog1What are the most fundamental recent changes within the real estate landscape of UK?

The real estate market in the UK continues to be a dual market with London being a separate micro climate to the rest of the UK. Fundamentals in the UK market remain strong however we remain cautious about certain non-core regional pricing aspirations.

 

The investment market has driven the sector for the last couple of years, do you see this continuing?

Yes – there are still extremely compelling supply demand factors impacting the UK real estate market in certain sub sectors – affordable residential being one. The only way this pent up demand will be filled is by continual institutional direct investment.

 

With overseas and post graduate students using most of the purpose built accommodation, how do you see the domestic based undergraduate students joining them?

I’m not sure that statement is 100% accurate for every market in the UK. It is true that overseas students and post grads take a sizeable portion of the PBSA market in areas like London, but regionally it is much more evenly split. In my opinion this reflects the pent up demand and lack of fit for purpose product for those students requiring more pastoral care and those willing to pay for a better quality of accommodation. This also highlights the continued opportunity in 2016 for further product to be built for the increasing demand from domestic students and to satisfy the backlog of modern fit for purpose product in the regions.

 

Which sub-sector are you most bullish about and why?

We are strong believers in the residential market in the UK – especially in affordable housing, student and retirement housing where strong fundamental macro drivers and structural undersupply provide for very compelling market conditions.

 

What are you looking to achieve at British GRI?

British GRI is a great opportunity to meet industry peers, discuss market trends and shares ideas on UK market dynamics.

 

Paul is featured on the British GRI 2016 program by co-chairing a discussion on “Student Housing – Which Model Works?” see full program here.

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