Student Accommodation – Despite the downturn, is 2012 the time you should make a commitment and invest?
Knight Frank described the requirement for student property in 2011 as ‘booming’ in the Student Property publication (May 2011). In there most recent review, there is still much of the same expected. The letting agency giant have wrote that the UK student accommodation property investment sector will carry on thriving in 2012 – as the market keeps on benefiting from “strong demand and lack of supply”. It is anticipated that the need in London could meet another one hundred thousand student addresses.
CBRE have recorded that virtually £840m of capital was pledged to investment and development in the United Kingdom’s student and accommodation division in 2011. This number is greater than double that of £350m in capital committed in 2009. Knight Frank’s most recent Student Property report speculates that student property returns have doubled in September 2011 to 15.1%.
It is also thought that the new University fee formation structure will only increase need for student houses at the most renowned Institutions. Where there are a large number of commercially valuable course positions. Whilst Student Property in close proximity to Universitites that provide non-commercially viable degrees will be troubled the most due to a lack of need. A list of the top 20 Institutions to consider when buying student accommodation can be found within Knight Franks Student Property Broadcast entitled – The Student Property Index.
The enlargement in the Student Accommodation division is said to be supported by housing with rents of less than £220 per week. This statement is backed up by the fact that accommodation within this asking price bracket are taken most quickly – suggesting the largest level of need.
Revenue outside of London fell from 14.6% in Sept 2010 – to 10.5% in Sept 2011.
CBRE have recorded that virtually £840m of capital was pledged to investment and development in the United Kingdom’s student and accommodation division in 2011. This number is greater than double that of £350m in capital committed in 2009. Knight Frank’s most recent Student Property report speculates that student property returns have doubled in September 2011 to 15.1%.
It is also thought that the new University fee formation structure will only increase need for student houses at the most renowned Institutions. Where there are a large number of commercially valuable course positions. Whilst Student Property in close proximity to Universitites that provide non-commercially viable degrees will be troubled the most due to a lack of need. A list of the top 20 Institutions to consider when buying student accommodation can be found within Knight Franks Student Property Broadcast entitled – The Student Property Index.
The enlargement in the Student Accommodation division is said to be supported by housing with rents of less than £220 per week. This statement is backed up by the fact that accommodation within this asking price bracket are taken most quickly – suggesting the largest level of need.
Revenue outside of London fell from 14.6% in Sept 2010 – to 10.5% in Sept 2011.
Knight Frank recommends investing in student accommodation that is; located in regional settlements, within a large student population concentration, near multiple higher educational institutions. This makes student property in Birmingham a preferable option.
Publication by both Knight Frank & CBRE recognise that education is an increasingly global marketplace. The percentage of student from abroad increased five fold from 1975 to 2008. This amount is estimated to increase two fold again by 2025. The continuation of this movement is propped up by the declining value of GBP – 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 Higher Educational Institutions.
CBRE predicts that the reconstruction of higher education course charges will remould the composition of the student population, opposed to forcing it into free fall. Overseas students will play an increasingly important role in the reformation of the student composition, resulting in foreign student numbers that are expected to increase by an average of 3-6%.
In conclusion, student property in London and localities that can be identified by the variables above may facilitate the investment opportunity you have been waiting for.
CBRE predicts that the reconstruction of higher education course charges will remould the composition of the student population, opposed to forcing it into free fall. Overseas students will play an increasingly important role in the reformation of the student composition, resulting in foreign student numbers that are expected to increase by an average of 3-6%.
In conclusion, student property in London and localities that can be identified by the variables above may facilitate the investment opportunity you have been waiting for.