Student Houses – Despite the financial crisis, is this the year you should make a commitment and invest?
Knight Frank defined the wish for student property in 2011 as ‘booming’ in the Student Property broadcast (May 2011). In there most recent inspection, there is still an extended requirement anticipated. The property monster have stated the UK student accommodation property investment division will continue to grow in 2012 – as the division continues to benefit from “strong requirement and lack of stock”. It is predicted that the requirement in London could satisfy another one hundred thousand student addresses.
CBRE have publicised boardering on £840m of capital was sworn to investment and development in the UK’s student and accommodation division last year (2011). This figure is more than two times that of £350m in capital sworn in 2009. Knight Frank’s most recent Student Property document predicts that student property returns have increased two fold in September 2011 to 15.1%.
It is also thought that the forthcoming course fee composition structure will only increase requirement for student accommodation at the most renowned Institutions. Where there are a great deal of sought after course places. Whilst Student Property near Universitites that provide non-commercially viable courses will suffer the most due to a lack of requirement.
CBRE have publicised boardering on £840m of capital was sworn to investment and development in the UK’s student and accommodation division last year (2011). This figure is more than two times that of £350m in capital sworn in 2009. Knight Frank’s most recent Student Property document predicts that student property returns have increased two fold in September 2011 to 15.1%.
It is also thought that the forthcoming course fee composition structure will only increase requirement for student accommodation at the most renowned Institutions. Where there are a great deal of sought after course places. Whilst Student Property near Universitites that provide non-commercially viable courses will suffer the most due to a lack of requirement.
A list of the top 20 Institutions to investigate when buying student property can be found within Knight Franks Student Property Broadcast entitled – The Student Property Index.
The growth in the Student Property sector is identified to be supported by housing with rents of less than £220 a week. This statement is supported by the fact that beds within this cost range are signed most quickly – revealing the largest level of need.
Revenue in the rest of the UK decreased from fourteen point six percent in September 2010 – to ten point five percent in Sept 2011. Knight Frank suggests investing in student accommodation that is; located in regional towns, within a big student population concentration, near multiple universities. This makes student housing in Birmingham a preferable option.
Publication by both Knight Frank & CBRE specify that education is an increasingly global marketplace. The percentage of overseas students rose five times from 1975 to 2008. This amount is anticipated to double again by 2025. The continuation of this shift is underpinned by the decreasing value of the pound – this means that it is getting cheaper for overseas students to study here, and the fact that the UK has five of the Worlds top 20 Universities.
CBRE expects that the reformation of higher education fees will remould the composition of the student population, opposed to forcing it into decline. Overseas students will play an increasingly important role in the restructuring of the student make-up, resulting in international student numbers that are expected to increase by an average of 3-6%.
In summary, student housing in London and localities that can be identified by the variables above may provide the investment opening you have been waiting for.