Student property still a top priority for investors

Student property still a top priority for investors

With growth in 2017 up to £4.9 billion from £3.2 billion, investment in UK student property saw a decent upturn last year and many analysts believe that this is set to continue.

Even though stats from UCAS showed a minor decrease in students receiving university places in 2017, the overall number of students needing university accommodation stayed pretty much in line with the five-year average at around 485,000 across the UK.

According to Savills, investment in student housing will continue to be a top priority for investors during 2018. Investment volumes are expected to grow by 17% compared to 2016 with approximately £5.3 billion being pumped into purpose-built student accommodation across the UK.

Cities such as Newcastle and Liverpool have been earmarked as student property investment hotspots for 2018 due to the current lack in supply of PBSA and the rising demand for high quality accommodation. A significant pipeline of new and existing students in these cities will be a catalyst for investment as new developments start to shoot up to meet the demand.

Investors are predicted to move away from the saturated London student market and look more towards regional cities like Newcastle and Liverpool to achieve the best returns.