Newly refurbished property in London

Knight Frank defined the wish for student accommodation in 2011 as ‘booming’ in the Student Property publication (May 2011). In there most up-to-date analysis, there is still an extended requirement anticipated. The property giant have recorded that the UK student accommodation property investment division will continue to thrive in 2012 – as the market keeps on benefiting from “strong demand and lack of supply”. It is predicted that the demand in London could satisfy another 100,000 student rooms. 

CBRE have stated almost £840m of capital was dedicated to investment and development in the UK’s student and accommodation market last year (2011). This figure is more than two times that of £350m in capital pledged in 2009. Knight Frank’s most recent Student Property report estimates that student property returns have increased two fold in September 2011 to fifteen point one percent.

It is also thought that the new University fee composition structure will only increase need for student property at the most elite Institutions. Where there are a great deal of commercially valuable course positions. Whilst Student Property near Universitites that provide non-economically viable degrees will be affected the most due to a lack of demand. A list of the top twenty Institutions to contemplate when buying student accommodation can be found within Knight Franks Student Property Report entitled – The Student Property Index. 

The growth in the Student Accommodation sector is stated to be supported by property with rents of less than £220 per week. This statement is supported by the fact that rooms within this price bracket are filled most quickly – indicating the biggest level of desire. 

Revenue in the rest of the UK dropped from 14.6% in September 2010 – to 10.5% in September 2011. Knight Frank suggests investing in student accommodation that is; located in regional economic centres, within a large student population density, near more than one universities. This makes student accommodation in Birmingham a great candidate.  

Publication by both Knight Frank & CBRE suggest that education is an increasingly global marketplace. The percentage of overseas students increased five times from 1975 to 2008. This value is predicted to increase two fold again by 2025. The perseverance of this trend is underpinned by the falling value of GBP – 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 Higher Educational Institutions.

CBRE anticipates that the restructuring of higher education fees will remould the make-up of the student population, opposed to throwing it into collapse. Overseas students will play an increasingly important role in the reformation of the student composition, resulting in over-seas student numbers that are anticipated to increase by an average of 3-6%. 

In conclusion, student accommodation in London and the surrounding areas characterised by the variables above is likely to provide the investment opening you have been waiting for.