Student Accommodation Continues To Be Big Investment Area For Landlords

02 November 2012 Categories: News

Student Accommodation Continues To Be Big Investment Area For Landlords

It seems that falling numbers at the UK’s universities this year has in no way deterred landlords and property investors from purchasing student property, as the latest figures show that over £2 billion was ploughed into this area of the industry during the first nine months of 2012. This figure is a 145% increase on that of 2011, even though applications for places at the major universities fell dramatically this year due to increased tuition fees.

Property consultants, CBRE, attributed a significant portion of the huge investment figure to a number of multi-million pound deals being struck in the major university cities, but the majority of the investment came from smaller landlords looking for the strong returns that student accommodation has been offering over the last few years.

Head of student advisory at CBRE, Jo Winchester, commented, “Total returns remain a key driver for investors, as they flock towards the impressive returns given by student accommodation for a second year in a row. Our data shows that student accommodation is outperforming other asset classes by some margin, as it has brought 9.6 per cent returns in the year to September 2012.”

It also seems that rents within the student accommodation sector are rising on an annual basis, with a 2.4% increase reported over the last twelve months.