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Experience Invest

Investment in student property set to increase

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The team at Experience Invest are one of the industry experts on student accommodation investments. In this blogpost we want to look at an article on the Property Wire website which reports that London’s student population is set to rise by 50% in the next ten years.

Along with a rise in student numbers, they’ll also need to be a rise in accommodation available for them. According to Property Wire, capital flowing into student housing is expected to grow to £5.7 billion by the end of this year, indeed £3.8 billion was invested in student accommodation in the first half of 2015 alone.

Full time students in the capital

The fastest growing student segment in the capital comes from non-European students coming to study full time. The number of non-European students has risen by 50% over the last ten years. According to a recent study, international students contribute around £2.3 billion to the capitals’ economy and help support some 60,000 jobs in London.

With house prices at a premium, and added constraints on mortgage lending, most students are in rented accommodation, and 28% of students are living in Houses of Multiple Occupation (HMOs). There is a distinct lack of university managed accommodation and a high demand for Purpose Built Student Accommodation (PBSA) which is set to grow as student numbers rise.

Private investors looking at student accommodation

A recent report by London First, showed the fastest growing segment of London’s growing student populace was overseas and postgraduate students. Much of the PBSA stock is currently occupied by these students. With student numbers set to double in London by 2025 developers are looking at the student accommodation asset class as the next big growth sector.

For people thinking about putting money into property there are many assets classes to choose from; residential, commercial, healthcare investments, retail, leisure and student accommodation. It’s clear that the demand for student housing is set to grow in the future, and this will pique the interest of investors too.

London Spring Place, Luton

One of the projects that Experience Invest are recommending to clients with an interest in student accommodation is the London Spring Place, Luton. This high yield student property investment is based just 0.4 miles from the University of Bedfordshire, the area is in high demand for student accommodation.

The property will be fully managed to make for a hassle free investment with 8.5% NET returns assured for five years. En-suite rooms start from £59,535. London Spring Place, Luton, is a great way to make inroads into the growing student accommodation market.

About Experience Invest

Experience Invest are 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.