Student accommodation market to remain strong
Landlords who are looking for the best way to invest their money in new UK property are increasingly turning towards the student rental homes market. This is because it is a thriving industry, only likely to get stronger.
According to Kamlesh Padhra, director at Infinity Property Solutions, this is a property type which is expected to remain strong over the course of the coming months.
He said that the demand for further places at top universities around the UK means that certain urban areas will continue to thrive with regards to student homes. This is despite the fact that all institutions in England and Wales now charge their students £9,000 per year.
"The British education system is one of the best in the world, which despite higher tuition fees, attracts much more foreign students to study in the UK as their qualifications are renowned across the world. As a result, the accommodation market will continue to be strong around all towns and cities where there is a large university present."
He said that a growth market where investors may not have looked before could be Hertfordshire. Buying in places like London, Oxford and Cambridge will see lower returns because of the fact that universities in these areas have been established for a number of years, meaning that the markets can be saturated.
However, buying properties to lease to students is not an easy task anymore, as those headed off for their education are now far more scrutinising over accommodation than they used to be.
Peter Mindenhall, researcher at IPINglobal.com, said that students, and particularly those from overseas who come to the UK with a larger financial backing, will be looking for property that offers them a safe, well managed environment that is close to their place of study.
It is also important to look for useful bus links and attractive local amenities such as good areas for shopping and other leisure activities in the area.
Posted at 04:54 14/08/2012