Could China crisis cause a student flat crash?

Could China crisis cause a student flat crash?

Economic turmoil in China could have huge implications for the explosion in student accommodation in North East cities according to one property expert.

Chinese economic output economy fell by 5.5% in 2015 to its slowest rate of growth since 1991 - causing a 23% slump in the value of its stock market and leading India to overtake it as the world’s fastest growing economy.
 
North East-based property expert Ajay Jagota of sales and lettings firm KIS believes this slowdown may lead to a decline in overseas students coming to the region – with huge implications for newly-constructed student accommodation.

Five student blocks opened in the centre of Newcastle in 2015, with a further six currently under construction. One in seventeen homes in the city centre are now occupied by students with 11,000 new students homes created since 2008.

A planned 445-bed student accommodation in the centre of Durham has recently caused controversy by closing the acclaimed restaurant Oldfields, while further plans to convert the nearby County Hospital site into a 363-bed student development were  rejected by planners.


Ajay Jagota, founder and Managing Director of KIS, said: “Students contribute a huge amount to our local economy, and student flats can actually be very good news for permanent residents, reducing pressure on the housing stock in areas popular with students and young professionals and lowering both house prices and rents.

But there are now tens of thousands of student bedrooms in our city centres which are relying on overseas students for their financial sustainability – and that sustainability could come under huge pressure if there is economic turmoil in the countries those students are coming from.

If the Year of the Monkey is one where the Chinese economy starts to suffer, sending offspring overseas for education is likely to be one of the areas families are going to economise on first. That could mean huge numbers of empty bedrooms and it’s easy to envisage empty buildings following that.

It might even sound glib, but even the end of China’s one child policy could have an impact, with families having less money to spend on individual children.

Assuming the figures are accurate other countries – Britain included – would kill for growth as disappointing as China’s  but in a globalised economy economic shocks on the on the other side of the world can have a huge and unforeseeable impact here, even on something as localised as the housing market”.

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SecomTech
SecomTech 19 Aug 2016

Firstly, I either lodge with DPS or do not take a deposit...secondly, If a tenant has not received a confirmation their deposit is secured with either a scheme or in an insured account with an agent/landlord,...

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jasonevans
jasonevans 19 Aug 2016

Belvoir has over 15 years of experience in property lettings, buying and renting and is one of the best agencies I know about. I have heard that they revived an award for the hard work. Really amazing...

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jasonevans
jasonevans 19 Aug 2016

Usually these areas are least affected when it comes to unexpected economical collapse.

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TheWaspNestRemover
TheWaspNestRemover 11 Aug 2016

You agree to pay for the treatment needed to get rid of fleas, ants, mice, wasps nests and other pests unless you can prove that these are a result of us not meeting our repairing responsibilities or these...

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madisonwelch80
madisonwelch80 02 Aug 2016

16% is quite a raise. Let's hope this tendency won't continue for long.

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madisonwelch80
madisonwelch80 02 Aug 2016

?66,963 is a serious price drop However buying a property it a serious investment only small percentage of the UK population could afford.

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madisonwelch80
madisonwelch80 02 Aug 2016

Wow, it kind of surprised me. I mean counting on mom and dad's bank even after retirement is too much. That's the moment in life when one should have ensured themselves. I am shocked.

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AbbieP.
AbbieP. 22 Jul 2016

"While house prices in the most expensive eleven boroughs have declined values in the cheapest eleven boroughs continue to rise" - not a nice way to even out the price range. London is overrated as it

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AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

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CommercialTrust
CommercialTrust 19 Jul 2016

Retirement investment has always been one of the biggest draws of buy to let. And the buy-to-let demographic is, on balance, older. (Over a third of our applicants are over 50 at the time of application.) It...

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Forrest Wheatey
Forrest Wheatey 11 Jul 2016

I find the time perfect for ever home-owner wannabe. Prices should slowly, but steadily drop, at least for the inner buyer. Making it harder for outsiders to buy properties (the whole Brexit thing means...

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property guru
property guru 11 Jul 2016

Why should Ajay even have to be looking for it. It should be public knowledge. Why is not just publish each years and to were it is and be AUDITED. Accountability.

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