UK Investors Move Further Afield for Student Accommodation Profits

14 June 2012 Categories: News

UK Investors Move Further Afield for Student Accommodation Profits

Student accommodation has been one of the most profitable forms of buy to let investment for many years however the proposed increase in university fees has seen many UK students this year applying to universities overseas. It seems however that property investors are following suit, with a large number of student properties being bought by UK landlords in places like Ireland and Scandinavia.

If UK universities go ahead with their plans, students will be faced with tuition fees of around £9000 per year – more than four times the £1810 that students pay in theRepublic of Irelandand around £9000 more than Scandinavian students pay. Understandably then students are resorting to studying abroad and property investors from the UK are following suit and buying  properties where the potential lies.

This doesn’t mean to say that student accommodation landlords in the  UK  need to worry though as the number of applications for university places from overseas students has risen by nearly 14% this year, easily compensating for the drop-off in applications from UK  students.

Ray Withers, CEO of student accommodation specialists, Property Frontiers, commented “Constantly high student populations in major university towns coupled with increasing demand for limited modern quality student accommodation (opposed to most Universities’ ageing campus stock) ensures that properties are near 100% occupied and at the best rates.

“Furthermore, with massive increases in overseas student numbers the purpose built student accommodation market continues to perform during continuing external pressures in the wider economy.”