L
Luke Masters
Member
Premium Member
Afternoon all,
I have seen an increasing number of investors looking to explore the student housing model in the past 12 months, I wonder whether this is an outcome of the increase in international students in the last decade increasing the demand for such property.
Although typically the investment nets you a higher rental return, I would like to open the conversation as to whether it translates to a higher net return or just a visually attractive gross return. This I ask this based upon the increased up keep costs generally associated with student rentals?
With the UK economy continuing to prosper the students of today often have access to better financial support and increased standard of living, this in turn gives them a higher expectation on the standard of property they expect. I envisage that student villages and student flat blocks will in the future offer a very low void rate with a potentially high return, this is of course based upon the costs associated with the upkeep.
I researched the topic and came up with some interesting statistics I have included below:
In the first half of 2015, £3.8 billion was invested in student property in the UK, and it’s predicted that this will rise to £5.7 billion by the end of the year. This amount is equal to the last three years combined.
The figures should come as no surprise as the demand for student accommodation continues to increase. In the last 10 years there has been a 50% increase in the number of international students, with 18% of the growing student population being international, according to the investment firm's findings.
Students are also moving towards preferring to live in purpose-built developments as opposed to Houses in Multiple Occupation (HMO’s).
Source: Property Investor Today
I would love to hear from people with experience or knowledge in the student market on any level and hear their thoughts on the future of this marketplace.
Best Wishes,
Luke Masters
I have seen an increasing number of investors looking to explore the student housing model in the past 12 months, I wonder whether this is an outcome of the increase in international students in the last decade increasing the demand for such property.
Although typically the investment nets you a higher rental return, I would like to open the conversation as to whether it translates to a higher net return or just a visually attractive gross return. This I ask this based upon the increased up keep costs generally associated with student rentals?
With the UK economy continuing to prosper the students of today often have access to better financial support and increased standard of living, this in turn gives them a higher expectation on the standard of property they expect. I envisage that student villages and student flat blocks will in the future offer a very low void rate with a potentially high return, this is of course based upon the costs associated with the upkeep.
I researched the topic and came up with some interesting statistics I have included below:
In the first half of 2015, £3.8 billion was invested in student property in the UK, and it’s predicted that this will rise to £5.7 billion by the end of the year. This amount is equal to the last three years combined.
The figures should come as no surprise as the demand for student accommodation continues to increase. In the last 10 years there has been a 50% increase in the number of international students, with 18% of the growing student population being international, according to the investment firm's findings.
Students are also moving towards preferring to live in purpose-built developments as opposed to Houses in Multiple Occupation (HMO’s).
Source: Property Investor Today
I would love to hear from people with experience or knowledge in the student market on any level and hear their thoughts on the future of this marketplace.
Best Wishes,
Luke Masters