Demand for student accommodation 'set to rise'
23rd September 2011
The rise in university tuition fees in 2012 is expected in lead to a growth in demand for student accommodation, an expert has said.
Stuart Cook, acquisitions manager at Fresh Start Living, pointed out that the student accommodation market will remain strong next year when tuition fees go up, as students increasingly move away from residential halls owned by university and turn to more affordable private property.
The growth in the student property market will be bolstered by foreign students, as the UK draws increasingly number of applicants from the European Union and further afield.
Mr Cook pointed out that according to research from Fresh Start Living, foreign students currently make up between 30 per cent and 40 per cent of the market.
"And with the amount of foreign students rising each year, they will ensure that the market continues to strengthen and grow," he added.
With this rise in demand for student accommodation, property marketed towards students is becoming an increasingly attractive and lucrative investment opportunity for property speculators.
Individuals interested in investing in student property were urged to take a number of important factors into account, such as taking out the appropriate insurance for blocks of flats and choosing a location that will be popular with young people.
When choosing a city, Mr Cook urged property seekers to look at the size and types of university located in the immediate vicinity and the number of students that apply for courses at the university and then cross reference those figures with the amount of registered student accommodation.
"Our research has found that there was a shortfall of accommodation for students in all cities across the UK, with around 100,000 units needed urgently," Mr Cook said.
"So long as the investor invests in a property close to the university with good transport links, they will be able to let it and see a good return."
According to Barratt Homes, buy-to-let property sales are rapidly on the rise.
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