Student Investment Property

In recent years, and most significantly since the financial turmoil of the credit crunch, UK student accommodation has come to be regarded as an important asset class within the broader property investment market, owing in the main to the fact that such assets have proven to deliver steady incomes and capital appreciation. Research undertaken by Knight Frank noted that ‘rental growth in the student sector remains robust, recording growth of 5% per annum (which) compares favourably with growth in the commercial sector of 0.5%’.

In spite of recent reforms of higher education, prompted by recommendations made in the Browne Report of 2010 which will see universities given the freedom to charge prospective UK students up to £9000 per annum in course fees, the number of people seeking to undertake a degree course or other form of higher education is expected to continue to grow. The demand for accommodation to cater for the housing needs of this large client base (some 450,000 people per annum) means that landlords who hold good quality property in the right location should have little problem in achieving 100% occupancy and consequently be able to enjoy a steady and stable income year-on-year.

Both Liverpool and Manchester with strong universities and student numbers are set to benefit from a ‘flight to quality’ as students seek more established establishments and courses.