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Experience Invest reviews the student property market investment potential





Experience Invest reviews

Ever since UCAS started to report marked rises in the numbers of both foreign and domestic students securing places at British universities back in 2011, demand from investors for student accommodation has been growing in a big way. The market has seen repeated years of investment in excess of £3 billion, and two that even topped £5 billion, ripping away the notion that the asset class is still the niche option that it once was.

However, after years of growth like this, investors would be forgiven for thinking that perhaps the growth of the market is set to slow down. But this is not the case. Repeated improvements in universities, coupled with consistent intake levels and a lack of institutions’ ability to meet demand for accommodation means that the market is still improving.

Places like Liverpool and Manchester are prime examples of this. The markets in these northern cities are still expanding, and with more than 150,000 students spread across numerous universities in these areas, demand is prevailing.

Developers have seen demand across this area alone rise by nearly 40 per cent in the last 12 months, and in addition to the 24,000 new homes built nationwide for students for the start of the new academic year, there are also already 15,000 new homes under construction across the country for the academic year starting in September 2018.

Investment from overseas is also starting to grow, with the spread of investors now moving wider and wider. In the past year alone, demand has almost doubled, and the Middle East, Singapore and other areas of the Far East are starting to see more investors flowing into the UK property market.

So, what’s the reason for this happening? It’s pretty simple; student demand. It’s not simply the level of demand from those who go to university in the UK, but also the change in what those students are looking for from their accommodation. For many years, those heading to university have been happy to live somewhere that represents little more than a roof over their head.

However, new types of accommodation have started to come to prominence in the last few years, with the purpose-built student accommodation market raising its head. This type of property is specially built with students in mind, and are developed with all the things they need as standard. Fast internet, social areas, study rooms and other excellent features have all become important parts of the student property sector thanks to the purpose-built market, attracting a growing number of students every year.

And from the point of view of investors, this type of property also offers an easier and more lucrative option, which explains why more and more continue to spend on these assets. Experience Invest reviews investing in purpose built accommodation, allows investors the chance to get themselves fully managed properties that give them a passive investment option, as well as an assured return over a set period that protects their income and lowers the risk of investment.

Looking for Experience Invest reviews from clients? Click here to read a student property resale story from a Hong Kong-based investor.