As well as providing a growing range of attractive living options for London commuters, Luton is developing into a key destination for the student market, an increasingly lucrative part of the investment property landscape that is attracting more attention from buyers.
Developments such as Opto Village, Park House and Chapel Street have expanded the range of available accommodation options for students at the University of Bedfordshire, and provided new opportunities for investors.
Much like commuters, students will be drawn to Luton by the town’s balance of easy access to London and lower living costs.
For investors, the purpose-built student accommodation (PBSA) sector has attractive features such as higher-than-average yields and reliable demand from tenants.
This asset class looks set to retain its appeal in the near future, largely because students from across Britain and overseas continue to show strong interest in studying in the UK. UCAS figures published in February 2019 showed that a record 38.8 per cent of 18-year-olds in England have applied to start a higher education course this year.
Furthermore, Knight Frank’s student new housing development update for April 2019 highlighted a strong pipeline of student bed spaces, emphasising the resilience of the market despite challenges such as Brexit.
James Pullan, the firm’s global head of student property, said: “With a significantly larger pipeline this year, confidence in UK PBSA remains undiminished.”
Taking all factors into account, it’s clear the student accommodation sector will continue to offer great potential for investors to secure regular returns and achieve capital growth in the years to come, and there are few locations better than Luton to realise these benefits.