Demand for high end student accommodation set to rise

Demand for high end student accommodation set to rise

Despite Brexit, the global demand for higher education places for students seeking to study in the UK is set to rise overall by 2020, with an increase of 870,000 higher education students, boosting demand for high-end accommodation in university cities.

While UK student numbers have stabilised, the number of international students are set to rise dramatically in the next decade. The provision of good quality student accommodation was traditionally the responsibility of the universities, but in recent years, most new accommodation had been provided by private investors and developers.

Savills has reported that investment in student accommodation in the UK has increased by 17% year on year. It is expected that £5.3bn will be invested in purpose-built student accommodation by the end of 2017, compared to £4.5bn last year and a record £6bn in 2015.

International students can be very profitable for landlords and letting agents, as many are prepared to pay higher rents for superior quality accommodation. Research from Knight Frank shows that the average weekly rent of a room in a student accommodation block is £126, according to Knight Frank, rising to £180 in Oxford and £200 in Guildford. International students are also good for the UK economy, generating more than £25 billion and providing a significant boost to regional jobs and local businesses.

According to UK guarantor service, Housing Hand, one of the biggest problems that international students face when renting a property is not having a UK guarantor.

Jeremy Robinson, Managing Director of Housing Hand comments: “This is a huge worry for students who are not able to pay 6-12 months in advance to secure their rental property. However, students who are unable to provide a quality UK guarantor can, provided they pass the Housing Hand application process, purchase our guarantor service.

The good news for landlords and letting agents is they can access the huge potential market of international students and the previously too risky market of tenants, with poor credit history. We offer letting agents and tenants reduced financial risk and for both, a widening of what is available on the market.

Those landlords and letting agents that have partnered with us have been able to increase occupancy, due to larger pool of creditworthy applicants and have been able to eliminate the risk of rent loss, due to tenant default, at no cost to them."

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Latest Comments

Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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