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Experience Invest

UK Student property investment is growing

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£3.98 billion was invested into UK student property in the first half of 2015 new figures show. The team at Experience Invest are leading the way in student accommodation investment and we know that currently all the core markets are under supplied.

In the whole of 2014, £2.35 billion was invested in the UK, so the figures for first half of 2015 show that investors are rapidly catching onto the potential gains in this sector. The research comes from CBRE who said that the high yields available in the student property sector are now attracting investors in large numbers.

London Yields

Yields in London student property are now at 4.75%, this is back to the high of the 2007 peak, this comes as an influx of students into the capital are left to fight over a lack of suitable student accommodation.

This situation is happening in every university town and city across the UK. The high demand and lack of supply means that rents are going upwards and capital values climb. Investors are becoming more and more attracted by this market with occupancy rates at 99% or higher and management companies maintaining properties which supply an excellent, hassle free, passive income stream.

Differences between residential and student accommodation

The Head of Student Housing at CBRE, Jo Winchester said: “So long as demand outstrips supply, upward pressure on both rents and capital values will continue to make the market an attractive proposition for investors, and we don’t expect the market to come off the boil for some time.

“Some investors see student housing as a more cost effective way of gaining access to the PRS, both in terms of higher yields and lower capital values per square foot.

“Although there are differences between residential and student accommodation operational models, some larger student housing operators and investors in the sector are beginning to explore build to let development and investing in the PRS. As this happens, it is possible that the operational models could become more closely aligned.”

Experience Invest

Experience Invest have been trading since 2004 and we’ve worked with all types of investors from first timers to high-NET-worth individuals and corporate clients. As market leaders in UK residential investments we’ve featured in The Telegraph newspaper. We specialise in high demand, high yield property investments. For more information, or to discuss your own investments needs please contact Experience Invest.