Find out what’s happening in the property investment arena both in the UK and internationally
Investment in UK student accommodation up by almost 50% report CBRE
April 17, 2012Article by Ray Withers
According to the latest research from CBRE, over £246 million of student housing investment deals in the UK were transacted in Q1 2012 with total investment in student accommodation increasing by nearly 50% to over £1.1 billion in 2011.
Indeed, demand for long leased products has risen seeing annual yields grow to 5.5% in the top regional towns for student housing let out to universities according to the CBRE research.
Furthermore UCAS (Universities and Colleges Admissions Services) has discovered that degree course applications from non-EU countries rose by an impressive 13.7% controlled primarily by students from East Asia, in particular Hong Kong.
Ray Withers, Chief Executive of leading student property investment agency active in the top university town of Liverpool, Property Frontiers comments,
“As the very best asset class around, student accommodation is a proven and successful investment choice so it’s hardly surprising that investment deals in this sector in the UK are on the increase. For us, Liverpool student accommodation is one of our most popular and most lucrative markets with this sector attracting particular interest due to its affordable price point and double digit returns.
“Indeed, in spite of the 5.2% drop in 2012 degree course applicants in the UK compared to the same period in 2011, we are not surprised that applicants from non EU countries, particularly in Asia are on the up. At present, Chinese students make up the largest overseas student group in the UK, contributing around £2 billion to the economy and, with education being of high importance in Chinese culture and with Britain hosting some of the world’s best universities, Chinese students and investors alike are starting to make their mark.”
Currently, Liverpool presents the optimum buy-to-let environment for any investor, reaping significant returns from strong demand with the Knight Frank Student Property report 2012 identifying that average rents for apartments and en-suite rooms in regions such as Liverpool rose by 4% with total returns of around 10.5% last year.
For global investors looking for the perfect opportunity, new high quality private student housing developments such as The Paper Mill, Liverpool could provide the answer.
As the latest student accommodation development from Property Frontiers, The Paper Mill offers en-suite student rooms set within a well located refurbished building in central Liverpool from just £48,000.
Comprising 102 en-suite student rooms, The Paper Mill sits within a superior location; situated in the heart of Liverpool, adjacent to Liverpool One shopping centre and offers investors a 10% NET yield assured in year 1.