Student property in the UK is always a price

Investing in the student market the UK real estate has shown steady and stable growth during the crisis, and, according to analysts of the group of companies Savills, investment growth in the future will only grow. It is expected that the growth will continue, despite the dissatisfaction of the students due to rising tuition fees and dissatisfaction of foreign students strict visa control.

After relatively small growth in rents during the 2012/2013 academic year, Savills analysts predict income of 9.3% for the 2013/2014 year with an initial interest rate of 6.3 % and growth during the year by 3% due to the increase in demand and the limited number of offerings on the market.

Investment in student housing has traditionally characterized acyclicity, i.e. it is moving against the economic cycle, thereby bringing greater profit when the economy slows down and investments grow when the market falls. At the same time we must remember that the market is not without risks and the most profitable to invest in student housing, which is based on the large student complexes or in cities where there are several universities.

Increased demand due to the number of students and the University is usually the first point of reference for future students and a good indicator of the investment market and increase profitability is by increasing the number of students or, at some universities – with a gradual upward trend in rents. Requested number of rooms is an early sign of the needs of students. If in the 2012/2013 academic year the number of requests fell by 6.7% in connection with increase of tuition fees to 9000 pounds a year, in 2013/2014 academic year the number of requests has grown by 2.7 %.

The demand for student places in the UK universities from Europe continues to grow, particularly high demand from the Far East, which shows the average annual growth of 8.5% over the past six years. Data published by UCAS, show us the increase in the number of requested places for students in British universities 9.3 % from China and 13.3% from India. Thus, we see that in spite of the complication in the rules of the student visa, the number of foreign students is not reduced.

Analysts Savills noted that the ability to attract the most capable and talented students, is vital for holding the leading positions on the world stage of education. In this regard, it is worth noting that any government policy aimed at reducing net immigration should take care of the division of student attending universities and those studying in schools that are not regulated by law.

The Savills Student City Monitor is a combined program, which contains such data as the demand for the school, the number of students in the University, educational University degree and financial health, affordability of local rental market and the number of housing under construction .

This allows you to make a gradation from top universities to the most famous. And only nine of them have a higher rating, such as bath, Bristol, Brighton, Cambridge, Cardiff, Edinburgh, London, Oxford and St Andrews, known to us for their academic achievement, greater international demand and a rich and relatively inaccessible market of local housing.

In the report, Savills also noted that the London market student property represents a great opportunity due to the availability and particular rents, which continues to grow, further driving demand.

® Maxim Savitsky 27.07.2013