Experience Invest reviews the state of the UK’s student property market

Experience Invest reviews the state of the UK’s student property market

In the latest version of the quarterly UK Student Accommodation Investment Guide, Experience Invest reviews the state of the market and provides the latest news, videos and updates about the sector.

UK’s best performing asset class

With student numbers reaching an all-time high in the 4 weeks after A-level results day, the UK’s student housing market is set to benefit from the rising number of people attending university courses.

Record breaking figures have also been recorded in the student property investment market. The latest figures from the experts at CBRE have shown that investment levels almost doubled in the first six months of 2015, when compared to the whole of 2014.

It is thought that between January and June 2015 £3.98 billion was invested in student property.

“So long as demand outstrips supply, upward pressure on both rents and capital values will continue to make the market an attractive proposition for investors, and we don’t expect the market to come off the boil for some time,” said Jo Winchester, Head of Student Housing Advisory at CBRE.

Rising investment in the sector has helped to push the asset class into the mainstream. Research conducted at the 2014 Jones Lang LaSalle’s Alternative Investment Seminar revealed that 70% of people intend to enter student accommodation market over the next 5 years.

“As we move towards 2019 and beyond, with what indicates to be an ever-increasing investor appetite, it is likely many of these assets will break out of the alternatives bracket and become a more mainstream choice for investors,” Chris Ireland, UK Chairman and Lead Director of Capital Markets at JLL commented.

Student property has been named the ‘UK’s best performing asset class since 2011’ by the property experts at Knight Frank.

The rise of the hands-off investment

Traditionally halls of residence or purpose-built blocks were unavailable to the every-day investor, as many investment opportunities in the sector were owned by funds or the universities themselves.

Houses in Multiple Occupancy (HMOs) were the only option for landlords who wished to generate an income from the student sector. Changes to legislation – meant to increase the standard of this form of housing – have meant that many landlords have a hands-on experience when renting to the market.

Fast forward to 2010, the asset class was opened up to individual investors by pioneers in the industry such as London-based property agent, Experience Invest.

Over the last 5 years the Company has provided a selection of fully managed student property investments, which have been designed to provide landlords with a passive income from the market.

The Company’s latest addition to the market, London Spring Place has attracted the attention of investors far and wide. The scheme is the Company’s third development in Luton which will service the large student intake of the University of Bedfordshire. The first project, which is fully operational and occupied, has become the number one choice for students attending courses at the university.

To provide investors with more information about the sector, Experience Invest reviews the UK’s student property market in an exclusive, easy to access guide. Simply click here to be redirected to the Q4 2015 UK Student Accommodation Investment Guide