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Experience Invest

Foreign Investments Drive the UK Student Housing Market





Welcome back to the Experience Invest blog, where we discuss the latest trends in the residential market, student accommodation and care home investments. This week we’re discussing the UK student housing market, which is seeing record levels of investment.

World Student Housing Report                                                                           

New research by Savills, the international real estate firm, shows that investment in student accommodation in the UK reached an all-time high this year.

Savills’ World Student Housing Report reveals that ‘the UK saw over $6.5bn of investment in its student sector in the first three quarter of 2015, overtaking the US’ for the first time ever. The US, in comparison, saw investment volumes of just over $3bn.

The student housing market, according to Savills, is now recognised as a ‘mainstream real estate asset class with worldwide potential’ and increasingly popular with investors on an international scale. It is believed that the UK student accommodation market is being driven by overseas investors, who are seeking assets for portfolio and pension funds.

“This is the first time the UK has outpaced the US in student housing investment which is quite remarkable given their disparate sizes. North American, Middle Eastern and Russian investors have led the charge into the UK,’ said Marcus Roberts, director of Student Investment and Development at Savills.

Demand for student accommodation

The student housing market has matured in recent years, a direct result of the sector faring well throughout the recession. As more people chose to go on to further education rather than seek employment during the downturn, student numbers increased. Consequently demand for student housing grew. Occupancy rates remained high, and investors in the sector experienced good yields.

The UK is extremely popular with international students. In 2014, statistics from UNESCO – the United Nations Educational, Scientific and Cultural Organisations, revealed that the UK was the second most popular destination for international students, after the US. Accommodation in ‘top-tier’ university UK cities such as London, Bristol and Edinburgh, is particularly sought after.

Beyond the UK

The report also demonstrates that other European countries are seeing demand for property in this sector increase, particularly in the Netherlands, Germany, and France. Australia, which attracts international students from China and South Korea, is also identified as an emerging market.

About Experience Invest

Experience Invest is a London-based independent property specialist. We focus on sourcing real estate opportunities across the UK. Our specialisms include residential investments, student property and care home investments. We work with clients in the UK and internationally. The company is regularly featured in the press, including in The Telegraph newspaper, on Yahoo Finance, and by the global news organisations Reuters.

Experience Invest recently announced the launch of One Wolstenholme Square, a brand new residential development in the heart of Liverpool. If you are interested in finding out more about this exciting residential investment opportunity or would like to explore our selection of residential buy-to-let properties or student accommodation opportunities please visit the website for full details.