UK Student Property Investment
Earlier this month, Brian Lloyd-Jones, the fund director of Unite Students, pointed out that due to its value of between £2 billion and £3 billion, the UK Student Property Investment market can no longer be seen as just another “alternative” high yielding property investment opportunity.
In fact it should now be classified as a mainstream asset class. Global real estate services Savills suggest that the UK Student Property Investment market is in fact rather similar to the commercial property market, because it is considered to also be a high yielding property investment, stable investment type.
The UK student property investment market in particular is increasingly becoming an intriguing investment. Savills explain that this is because of the sector’s continuous yield growth, even in times of economic downturn. Global property consultancy Knight Frank states that the UK demonstrated its strong performance of its student property investment sector through an average yield growth of 1.59%.
However the most promising opportunity regarding returns for potential investors, presents itself in the North West of the country with North West property investments achieving rental growth of as much as 4%. The Census in 2011 revealed there are over 500,000 full-time students across England and Wales. Chancellor George Osborne announced that this current situation is only going to improve, as the cap on the number of students will be released, allowing British universities to further recruit approx. 30,000 new students in 2015.
Although the number of students is relatively high, the UK Student Property Investment market is still to a large extent under supplied, as some universities struggle to supply first years and returning students with accommodation. On the opposite side of the spectrum, Savills reports that there is an increasing longing of students from wealthy backgrounds, particularly from Asia, to have an education in English. Hence student accommodation markets in the US and the UK appear to be the most attractive target markets in the world, as these two alone grew by 780% since the financial crisis in 2009.
High Yielding Buy to Let Investments on the rise
The high number of students, coupled with the rising demand for student accommodation and fairly low levels of supply, therefore further add to the attractiveness of student property investment. Savills hail the UK student property investment market as having a promising long-term high yielding investment advantage, as it is the sector certain to see the most growth.
While agreeing with these finding, The Mistoria Group the High Yielding Buy to Let investment specialists who offers arm chair investments, high yielding property investments and HMO Property Investments in the UK generating combined cash yield up to 13% says that potential investors should start investing now before it is too late. For more information on our current available investments and the services we offer email us at firstname.lastname@example.org or call us on 0800 500 3015.