Student Housing Market 'To Become Polarised'

Changes to the fees structure for universities around the UK will result in a polarisation of the prospects for investment in student accommodation...

Changes to the fees structure for universities around the UK will result in a polarisation of the prospects for investment in student accommodation, Savills has claimed. In its report Spotlight on Student Housing, the firm stressed that investors will need to weigh up more factors alongside the number of people attending each institution.

Director of Savills research Yolande Barnes commented: "Investors and developers will have to consider the combination of academic prospects and market prospects at a highly localised level." This will help them to "determine viability over the mid to longer term", she asserted. The firm also noted that a growing gap will develop between the first class locations - universities that can withstand the changes to student funding - and third class places, which will struggle to attract students due to the higher fees.

However, the organisation stressed that a well-placed investment in the sector can be high yielding, which is aided by the overall shortage of supply of housing designed specifically for students. Last month, head of residential research at Knight Frank Liam Bailey suggested that property investors would do well to seek out assets in university towns and cities because the local economy is often strong in such locations.
 

- Friday 09 September 2011

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