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Student accommodation

How is the student property sector set to perform for investors in 2016/17?

Author: Staff

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The evergreen nature of the UK student property sector is one of the main reasons it has become such a fantastic investment option in the last three years in particular, and certainly a factor in its raking in of more than £11 billion from buyers in that period alone.

And it is that steady, evergreen quality that is set to guide the student sector through the tricky Brexit period and make it one of the best earners for owners in terms of return on investment across the country.

After all, political uncertainty might have made demand in the wider mainstream rental market dip a little, according to the Association of Residential Letting Agents, since June’s Brexit vote, but student numbers for the academic year that begins in September are up once again, meaning demand for this type of asset is set to remain as steady as they come.

So with only a few weeks to go until students start to head back to universities up and down the country for another academic year, just what can landlords expect from the market in the year ahead?

Student housing sector report

UK Student Housing Report

JLL’s Student Housing Report suggests that it will be another good year in terms of returns and growth therein. It said that high occupancy rates and attractive income growth throughout the year could mean that investors in the lucrative asset class see themselves able to increase their returns by up to five per cent in the coming academic year.

Huw Forrest, director of JLL’s student housing team, said that one major advantages that student property has over other assets in the market is that the attractiveness of the education market here greatly outweighs Brexit fears.

First class investment

Student Property Sector Remains a First Class Investment

“While it is too early to have definitive views on the impact of Brexit on the student housing sector, it is likely to remain more resilient than other sectors. This is due to the continued attraction of the UK university market, coupled with the depreciation of sterling, which will make the UK a more affordable destination to study for international students. It is also important to remember that EU students make up only six per cent of students.

“We are currently seeing good levels of investment demand following the referendum and, generally, transactions we are working on have seen little impact as a result of the Brexit vote.”

Click here for instant access to the Experience Invest Q3 2016 UK Student Accommodation Investment Guide.

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