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Student accommodation

British universities still ‘punching above their weight’

Author: Staff

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The UK’s student property market has been booming for some time now, with high returns of around eight to nine per cent and the strong levels of demand prevalent in the sector enticing investors to spend big on this type of asset.

It has meant that in the last few years we’ve seen student property investment go from strength to strength, with the last three years alone having witnessed £6 billion spent in the sector. This has happened thanks largely to a strong demand from overseas students to come and study in the UK, even after the raised tuition fees in 2012 temporarily slowed applications.

The continued influx of foreign students and subsequent demand for properties relies on a strong higher education system, and according to the 2015 Times Higher Education world reputation rankings, this is something that the UK continues to offer.

It said that the UK is essentially ‘punching above its weight’ internationally. In the top 100 list, 12 universities are located in the UK, which represents remarkable success for what is a relatively small nation.

The US is the strongest market in the world for higher education, according to the list, with 43 universities making the list, including the first placed Harvard. However, the UK comes in just behind the US in second place.

Nicola Dandridge, chief executive of Universities UK, said it was a real achievement that the UK retained the second strongest university system in the world. The fact that the country continues to look so attractive to overseas students in particular will be fantastic news for property investors, with demand unlikely to dwindle any time soon.

However, Times rankings editor Phil Baty said that it’s important the government continues to give higher education institutions the funding they need to retain their impressive standing, saying “these incredibly valuable assets need to be carefully protected”.

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