Student Flats – Despite the financial crisis, is 2012 the year you should make a commitment and invest?
Knight Frank defined the need for student property in 2011 as ‘booming’ in the Student Accommodation publication (May 2011). In there most recent inspection, there is still an extended requirement anticipated. The letting agency giant have publicised the UK student accommodation property investment sector will carry on growing in 2012 – as the market continues to benefit from “strong need and lack of stock”. It is estimated that the need in London could cater for another one hundred thousand student rooms.
CBRE have revealed that close to £840m of capital was pledged to investment and development in the United Kingdom’s student and accommodation market last year (2011). This number is more than double that of £350m in capital pledged in 2009. Knight Frank’s most recent Student Property report suggestst that student accommodation returns have increased two fold in September 2011 to fifteen point one percent.
It is also thought that the future course fee make-up structure will only increase need for student accommodation at the most elite Universities. Where there are a great deal of commercially valuable course places. Whilst Student Property in close proximity to Universitites that provide non-economically viable courses will suffer the most due to a lack of need. A list of the top twenty Institutions to take into account when buying student houses can be found within Knight Franks Student Property Publication entitled – The Student Property Index.
The enlargement in the Student Housing division is identified to be supported by accommodation with rents of less than £220 per week. This statement is supported by the fact that houses within this cost range are taken most quickly – revealing the greatest level of desire.
CBRE have revealed that close to £840m of capital was pledged to investment and development in the United Kingdom’s student and accommodation market last year (2011). This number is more than double that of £350m in capital pledged in 2009. Knight Frank’s most recent Student Property report suggestst that student accommodation returns have increased two fold in September 2011 to fifteen point one percent.
It is also thought that the future course fee make-up structure will only increase need for student accommodation at the most elite Universities. Where there are a great deal of commercially valuable course places. Whilst Student Property in close proximity to Universitites that provide non-economically viable courses will suffer the most due to a lack of need. A list of the top twenty Institutions to take into account when buying student houses can be found within Knight Franks Student Property Publication entitled – The Student Property Index.
The enlargement in the Student Housing division is identified to be supported by accommodation with rents of less than £220 per week. This statement is supported by the fact that houses within this cost range are taken most quickly – revealing the greatest level of desire.
Revenue in the rest of the UK decreased from 14.6% in September 2010 – to 10.5% in Sept 2011.
Knight Frank encourages investing in student property that is; located in regional settlements, within a high student population concentration, near more than one universities. This makes student housing in Birmingham a preferable candidate.
Report by both Knight Frank & CBRE specify that education is an increasingly global marketplace. The proportion of overseas students increased five times from 1975 to 2008. This number is anticipated to double again by 2025. The continuation of this movement is supported by the falling value of GBP – meaning that it is becoming more cost effective for overseas students to study here, and the fact that the UK has 5 of the Worlds top 20 Universities.
CBRE predicts that the reconstruction of higher education course charges will remould the composition of the student population, opposed to forcing it into collapse. Overseas students will play an increasingly important role in the reformation of the student make-up, resulting in foreign student numbers that are expected to increase by an average of 3-6%.
All in all, student accommodation in London and the surrounding areas characterised by the variables above may provide the investment opening you have been waiting for.
Report by both Knight Frank & CBRE specify that education is an increasingly global marketplace. The proportion of overseas students increased five times from 1975 to 2008. This number is anticipated to double again by 2025. The continuation of this movement is supported by the falling value of GBP – meaning that it is becoming more cost effective for overseas students to study here, and the fact that the UK has 5 of the Worlds top 20 Universities.
CBRE predicts that the reconstruction of higher education course charges will remould the composition of the student population, opposed to forcing it into collapse. Overseas students will play an increasingly important role in the reformation of the student make-up, resulting in foreign student numbers that are expected to increase by an average of 3-6%.
All in all, student accommodation in London and the surrounding areas characterised by the variables above may provide the investment opening you have been waiting for.
