17:40 PM, 18th June 2012, About 10 years ago
Target markets where demand for student housing is growing are highlighted in a new specialist property report.
Cities where demand is at the highest are in Lancashire and Scotland, according to analysis by property consultants Savills.
The university with the greatest demand is Edge Hill, Ormskirk, Lancashire – with applications from new students soaring by 105%.
Close behind are Lancaster University and Heriot-Watt University, Edinburgh – both with applications running at around 100%. Other universities with demand rising by more than 60% are at Huddersfield, West Yorkshire, and Dundee and Stirling, Scotland.
Demand fell at many universities, with Liverpool John Moores falling back by around 30%, while Leeds Metropolitan dropped by 20%.
Savills’ Student Housing Spotlight 2012 is tailored for corporate investors, but mines valuable up-to-the-minute data for small property businesses letting to students.
“There is a strong likelihood that universities will increasingly seek to avoid calls on capital and revenue arising from their own ageing accommodation and will look to generate capital receipts and improvements to their accommodation from investors through stock transfer,” said the report.
“This offers unprecedented opportunities for investors in high-quality university locations not otherwise available to them due to lack of newly built supply. We have analysed where the best opportunities lie.”
The report also analysed other key student letting indicators – like take-up on courses from international students.
Savills reckons demand from Europe, China, India and the USA from students aged under 24 will stay the same, but will surge in many other countries, especially those with emerging economies.
Official statistics have already pinpointed demand from overseas will increase for the next decade, with around 30,000 more students coming to the UK, many heading for London.
For London, Savills calculates that universities and corporates will fail to meet even a small percentage of increasing demand.
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