10 reasons why investors can’t get enough of student property

10 reasons why investors can’t get enough of student property

The levels of growth we have been seeing in the student property market are unprecedented. At the end of 2015 the market was worth a staggering £5.7 billion and it continues to grow. Here are 10 reasons why investors simply can’t get enough of student property:

  1. Student numbers across the globe have increased from 98 million in 2000 to 165 million by 2011. By 2025 this is forecast to reach over 263 million. Over half of these students have come from Asia, followed by Europe, Africa and South America and the lion’s share of these students have been attending universities in the UK and US.
  1. There are over 2 million students in the UK of which around 390,000 are students from overseas. It is estimated that there are currently only 524,000 purpose-built student rooms available in the UK so you can see the mismatch! The demand for student property is massive and that’s why rooms in PBSA get snapped up quickly.
  1. Student numbers in the UK have increased by 50% over the last decade, despite the hike in tuition fees.
  1. The UK can boast 34 out of the top 200 universities featured in the Times Higher Education. This makes the UK a magnet for international students.
  1. Investors love student properties because they come fully refurbished and managed so this means a hassle-free investment.
  1. Student property has proven stability, more so than any other type of property investment. It is the only asset class which has enjoyed consecutive increased annual returns, even during the recession.
  1. Student number caps have been lifted in the UK creating more need for PBSA (Purpose-Built Student Accommodation). Universities are able to recruit as many students as they can cope with which means that the demand for student property is forecast to increase even further.
  1. Students prefer the specifications of PBSA over HMO properties and they are prepared to pay more rent for getting it. The quality that PBSA offers together with the lifestyle it gives as proven to be attractive to students and parents have been happy to pay the higher rents because of the security it gives.
  1. Students love the fact that PBSA offers a secure environment, rents that include bills, tenancy lengths which are flexible, professional management and excellent Wi Fi connectivity.
  1. Student property consistently outperforms traditional forms of investments such as ISAs, bonds and equities. The pension reform changes are attracting many investors over the age of 55 to student property who see it as a great way of funding their retirement.

And there you have it. We could probably find another 10 reasons why investors love student property so much and this trend doesn’t look like changing any time soon.