Student property continues to attract investors
Demand for more student property nationwide and a fear of what Brexit could mean for the wider property market is helping to fuel a swell in the number of people set to invest in student property, according to a new report.
Buyers who would previously have used the mainstream rental market are worried that the Brexit process could mean the value of their investments falling, but a constant, and in fact growing, supply of student tenants nationwide has meant a need for investment, and many of those with concerns over Brexit are going to move into the market as a result.
In London, for example, the Evening Standard reports that there are as many as 279,160 full-time students. However, there are only in the region of 60,000 purpose-built homes in the city, which shows a real demand for homes that are built with students in mind, which means a need for investment.
Demand for UK student property
It’s a similar story across the UK, where there is an ever rising demand for student property. For example, in Liverpool, there has been a rise from 50,000 to 60,000 students in the course of the last year alone, and 60 per cent of all students in the city need private accommodation, which creates strong demand and a real need for further investment.
While this year has not been as strong so far for student property investment as last year was, the fact that there was £2 billion worth of investment in the first three quarters of the year shows that it remains strong, and the final three months of the year should only add to this as investors turn to student homes in the face of Brexit.
Roger Lown, head of student housing at GVA, said: “Brexit has spooked conventional asset classes such as offices and retail, but student accommodation in the capital is safeguarded because of the strong cash generating characteristics and its reputation as a safe asset.”