The deadline for applications to universities for the 2017 academic year has passed, and it’s now only a few weeks until the data on the applicant numbers for the September 2017 entry are released, but already, there are predictions that 2017 is set to be a strong one for the student housing sector yet again.
Over the last few years, the market has enjoyed investment levels of around £16 billion as it has risen from the niche areas it once resided in to become one of the biggest and strongest arms of the property sector, and this year is expected to be no different, as a rise in student numbers is forecast to boost investment levels once more.
According to a recent report released by property firm Knight Frank, by September 2017, when the majority of students for the new intake will be moving into their new student houses, the total value of student property across the UK could top £45.8 billion.
Knight Frank said that it expects investors and developers to come together to bring as many as 24,000 new beds to the market this year, which should mean that there are just under 550,000 in total nationwide by the time students get ready to move in for the year ahead.
Investment in student houses
This investment level will once again be underpinned by the fact that there will be a further rise in the number of students looking for high-quality rental accommodation, and a swell in demand for purpose built stock that meets their needs.
Rachel Pengilley, partner of the Knight Frank Student Property team, said: “As our sector continues to mature, and becomes increasingly recognised for its resilience in uncertain times, we anticipate continued appetite from global capital next year. As we look to 2017, rental growth, strong demand from domestic and international students and a healthy development pipeline are set to be the defining factors in the sector’s success.”
And it’s not just UK investors who are going to continue to pile their money into this radiant area of the property sector, with Knight Frank predicting that the performance of UK student houses over the course of the last few years will only serve to attract more attention from overseas and see investment levels increase even further.
“We expect to see capital from all four corners of the globe looking to invest in UK and wider European student accommodation,” Ms Pengilley said.