Student Houses – Despite the financial crisis, is 2012 the year you should make a commitment and invest?
Knight Frank clarified the demand for student accommodation in 2011 as ‘booming’ in the Student Accommodation publication (May 2011). In there latest inspection, there is still a continued demand forecast. The property monster have wrote that the UK student accommodation property investment division will carry on growing in 2012 – as the market proceeds to benefit from “strong requirement and lack of supply”. It is anticipated that the need in London could cater for another one hundred thousand student addresses.
CBRE have wrote that virtually £840m of capital was committed to investment and development in the United Kingdom’s student and accommodation market 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 report suggestst that student accommodation returns have doubled in September 2011 to fifteen point one percent.
It is also thought that the forthcoming tuition fee make-up structure will only increase requirement for student property at the most elite Universities. Where there are a great deal of sought after course places. Whilst Student Property in reach of Universitites that provide non-economically viable qualifications will be affected the most due to a lack of demand. A list of the top twenty Institutions to review when purchasing student property can be found within Knight Franks Student Property Document entitled – The Student Property Index.
CBRE have wrote that virtually £840m of capital was committed to investment and development in the United Kingdom’s student and accommodation market 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 report suggestst that student accommodation returns have doubled in September 2011 to fifteen point one percent.
It is also thought that the forthcoming tuition fee make-up structure will only increase requirement for student property at the most elite Universities. Where there are a great deal of sought after course places. Whilst Student Property in reach of Universitites that provide non-economically viable qualifications will be affected the most due to a lack of demand. A list of the top twenty Institutions to review when purchasing student property can be found within Knight Franks Student Property Document entitled – The Student Property Index.
The escalation in the Student Housing market is said to be supported by housing with rents of less than two hundred and twenty pounds a week. This statement is propped up by the fact that beds within this asking price bracket are taken most quickly – indicating the biggest level of need.
Revenue in the rest of the UK dropped from fourteen point six percent in Sept 2010 – to ten point five percent in September 2011. Knight Frank recommends investing in student property that is; located in regional settlements, within a big student population density, near multiple higher educational institutions. This makes student property in Birmingham a preferable option.
Documents by both Knight Frank & CBRE identify that education is an increasingly global marketplace. The proportion of student from abroad increased five times from 1975 to 2008. This figure is expected to double again by 2025. The perseverance of this shift is supported by the falling value of the pound – this means that it is getting cheaper for overseas students to study here, and the fact that the UK has 5 of the Worlds top twenty Universities.
CBRE anticipates that the restructuring of higher education fees 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 restructuring of the student composition, resulting in foreign student numbers that are expected to increase by an average of three to six percent.
In conclusion, student property in London and localities characterised by the variables above could provide the investment opening you have been looking for.
Documents by both Knight Frank & CBRE identify that education is an increasingly global marketplace. The proportion of student from abroad increased five times from 1975 to 2008. This figure is expected to double again by 2025. The perseverance of this shift is supported by the falling value of the pound – this means that it is getting cheaper for overseas students to study here, and the fact that the UK has 5 of the Worlds top twenty Universities.
CBRE anticipates that the restructuring of higher education fees 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 restructuring of the student composition, resulting in foreign student numbers that are expected to increase by an average of three to six percent.
In conclusion, student property in London and localities characterised by the variables above could provide the investment opening you have been looking for.