Investors around the UK could soon be facing an influx of new prospective tenants, after the government revealed it is considering a legislative change that would potentially increase the number of university students across the country.
According to universities minister, David Willetts, more graduates with degrees at university level is a key for future growth in the UK. He made the claim as he said he is thinking about lifting the cap on the number of students that each university can enrol.
Plans would see the number of students increased in the upcoming academic year, before the limits would be completely abolished in a year’s time.
In the year starting in September 2014, the government is planning to create an extra 30,000 places across the UK, while Mr Willetts said that sufficient funding is in place to see this number increased by 60,000 again in 2015.
“In the longer term, there is a deep trend for more people to go to university. It’s not the end of the process,” he said, explaining that there would be the potential for long-term growth of student numbers, which would keep demand for created places high.
Mr Willetts said that in the long-run, a female university graduate is worth some £264,000 to the UK economy, while male graduates are not far behind, generating around £211,000 on average, showing that there is worth in bringing more people through the system.
This news, of course, is great for those looking to invest in student properties around the UK. A greater number of students around the UK would mean higher demand for property and a better level of demand for homes.
And with student yields already creeping around the eight per cent mark on average, investors could be in for a strong few years – now could really be the time to invest further and increase your portfolio to really meet demand.