UK student property market still growingMake Text Bigger
The UK student property market is continuing to grow and provide landlords with healthy yields, according to latest figures.
Investment in student accommodation hit £3.98 billion in the first half of 2015, well ahead of the £2.35 billion for the whole of last year.
The research from commercial property and real estate company CBRE, also revealed that London saw a record £1.98 billion worth of transactions across the first half of the year.
London saw the fastest change in student housing yields in the whole of the UK, with yields now at 4.75% – levels not seen since 2007.
The constrained supply of student housing across the UK means a number of students are chasing the limited stock of suitable accommodation in most University towns, according to CBRE.
Student accommodation often has lower capital values per square foot than residential stock, making it more accessible for many investors.
“Many investors are attracted to high yields that the student accommodation can provide, which are often higher than those of residential stock in the capital,” said a spokesperson for Property 118s landlord insurance providers Discount Insurance.
“Upward rents and capital values will continue to make the market an attractive proposition for investors, as long as demand outstrips supply.
“We recommend that those landlords looking to get into the market, do their homework first to ensure that they choose the right region in which to invest,” added the spokesperson.
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