The last two years have seen a massive surge in UK student housing investment activity with £5 billion worth of standing stock and development sites sold.
Now that this market sector has proven itself, and moving to maturity, we believe that now is the perfect time for our investors to take a serious look at UK purpose-built student accommodation.
We asked our customers the questions on their lips and here's the first of these Q&A sessions.
Q: There is no doubt, right now there's a very healthy appetite amongst property investors (at home and abroad) for quality Purpose-built Student Accommodation. But why? Is it really a better investment than traditional Buy-to-let?
A: That's two questions! I'll answer the first now and we'll look at the second in the next post on the subject.
So why the buzz among investors about housing students in purpose built accomodation?
The first reason is demand:
A report produced last year by the British Department for Business, Innovation and Skills stated “We believe it is realistic for numbers of international students in higher education to grow by 15%-20% over the next five years… there is no cap on the number of students who can come to study in the UK and no intention to introduce one.”
These students need somewhere to live and their standards are high. Gone are the days of my youth when students would make do with a damp and draughty private shared house. This was inevitable at the time as no university had sufficient stock to offer housing to more than first year students.
Today, especially with high fee-paying overseas students (or their parents), the demand is for excellent facilities in safe, secure purpose-built buildings, close to their colleges and the city centre.
The next reason is lack of supply.
The right type of quality accommodation is scarce, with this increase in demand for high quality initially taking the industry by surprise. HighGround has been carefully following the progress of the sector, but only now do we feel confident enough in the range and quality of property developer and facilities managers to identify some excellent opportunities that would ideally complement most of our investors portfolios.
What's available now? Introducing Primus Place, Leicester..
We're putting together for our investors the Student Property Best of Breed, and a perfect example is Primus Place in the heart of Leicester. We're using our unique 300-points research system that we use to quality check every property we offer. Primus Place passes with flying colours and I really encourage to take a look and check out the excellent benefits on offer.
Primus Place is different - in that it focuses on the lucrative Postgraduate student marketplace. And to kick start the income it offers a guaranteed yield of 8% for the first 5 years. Just click the image below to discover more...