Over incentive course of the past two years, we have seen significant growth in demand for student investment property in the UK. Having proven resilient to the recent economic crisis, student accommodation investment has now become one of the leading investment asset classes for investors looking for growth in 2012.
At the heart of this increase in demand for student investment property is the imbalance between available accommodation and demand for bed spaces in the leading university towns such as London, Liverpool, Manchester, Oxford, Birmingham and Leeds. Recent data from UCAS showed that demand for places in higher education is at an all-time high with over 700,000 university applications in 2010. Indeed student applications in the UK increased by over 20% in the five years up to 2011.
Shift Towards Privately Owned Halls Of ResidenceWhilst the demand for student accommodation looks set to continue increasing for the foreseeable future, there has been a significant shift away from private rented student accommodation, towards fully managed, privately owned halls of residence. According to HESA, the number of full time students living in halls of residence increased by almost 25% last year. This increase in demand for student accommodation has been reflected in the average rents for students in this sector, and according to NUS/Unipol data between 2007 and 2010, there was an increase in average student rents of almost 22% for the period.
Overseas Students Studying In The UKFigures recently released by UCAS for the next academic year have shown that there is expected to be an increase of 13.7% in non-UK students applying to student in UK universities. These figures merely reflecting a long term trend for overseas students looking to study at some of the prestigious UK universities, particularly from destinations including Hong Kong, China, Singapore and India. With these international students typically seeking higher quality accommodation in close proximity to the universities, the demand for fully managed halls of residences looks set to increase considerably in the years to come.
With Universities in the UK now facing decreases in the levels of government funding, the additional revenues offered from non-EU students now being seen as vital to the commercial success of the universities, it is likely that this increase in overseas students at UK universities looks set to continue.
We now offer one of the largest portfolio's of student investment properties in the UK, with development located throughout the UK offering returns of up to 10% guaranteed for two years.
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