Why the UK is such an Attractive Market for Student Property Investors

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Reports say that about 1.4 million students are currently in the country for study purposes. More than the half of the total number of students is granted the quality purpose-build students beds across the UK. The difference is calculated on average bases perhaps there are some other regions in the UK where this imbalance between the supply and demand of student housing is more than that of the average.

Likewise London the difference is huge than any other part of the UK. Where reports say that more than a hundred thousand students are currently in London and most of them are experiencing low supply accommodation and by the mean time it will get worse as students are likely migrating to UK to fulfill their education appetite. 

More likely the areas near to the institutions particularly universities where student’s number is in thousands are as sweet as honey in terms of student housing because students always prefer to choose their accommodation nearer to their institutions whereas these areas are not fulfilling their demands because a massive shortage is found in student accommodation.

So the whole study reveals the bright side of this industry where the current situation is quite eye-catching for the investors who can invest in such fruitful industry where yields are higher than any of the property investments. Investors would have the better opportunity by investing in this potential and cost effective industry.

Now a question mark is on the faces of the investors that which areas are suitable by investment point of view to raise the supply of student housing where they would cater the business. The answer is simple try to invest in such dense areas where the students are more likely to stay in.

First we must understand the difference between the university going and college or school going student. The university going students are more likely from the high class where institution fee are too high, not easily affordable for the middle class. So the university student would probably choose the best and quality accommodation more likely the expensive one for them. We are all well aware that college or school fee structure is comparatively less expensive than that of the university level. So they willingly choose the inexpensive accommodation for them to stay on.

So investors have both the options to get benefits from. They may choose to invest high in providing the well off student’s accommodation within the expensive inner city areas where you may have access of all you need. Or they may have the option to invest in such inexpensive parts where students may pay less for accommodation.

Obviously investing high would let you to get high yields. The meaningful and quality purpose-build student accommodation is low risky industry where you may get double digit yields as far as the UK’s education system is producing the high quality education, till the time students around the globe would travel to UK and would need at hand accommodation.

It is the right time to divert the intentions of the investors towards this potential industry. Building up the student accommodation (studio style rental apartments or purpose-build student beds) near the university or college may provide the bright chance of getting the students for renting.

A good number of local firms and companies related to real estate sector are trying to get advantage of such profitable situations. The financial institutions and the investment banks are now diverting their intentions towards Student Housing Investment because this industry is growing up word with huge returns. It is estimated that more than 10 percent of the total investment can be earned which is really very high as per the profits that banks deliver to their share holders or investors. So the profits are really desirable as they are unpredictable and unimaginative.

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k johns has 1 articles online

K Johns is an acting marketing manager for Regency Suites Nottingham one of the best firms providing cost effective investment opportunities to the investors from around the globe to gain high returns by investing in UK student Accommodation.  Contact him at info@regencysuitesnottingham.com

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Why the UK is such an Attractive Market for Student Property Investors

This article was published on 2013/08/20