Worth investigating? “Student investment” and student accommodation

Investment in student housing “more than doubled” last year, according to a January report in the Telegraph:

“Investment is student accommodation has risen sharply over the past three years, during the worst financial crisis since the 1930s.

“The jump in investment in 2012 followed a 53pc increase in 2011, and 124pc in 2010.

“According to CBRE, student housing is strongly outperforming other property asset classes. Last year, it delivered total returns of 9.6pc for investors, compared with 4.4pc for all office properties and 2.2pc for all retail.”

Indeed, yields of “9-10%” are promised by one new development in Glasgow. One question for student investigators might be: with such high returns, which universities are themselves investing in this area – and what value for money do students get from both the private and public sector? Are there areas of the country that are particularly under-served (for example, London appears to be a big focus)?

More information can be found in this 2012 report (PDF) from specialists Savills UK who have a six-strong ‘Student Investment and Development Team’.

If you want to investigate this, get in touch so we can put you in touch with others.

About Paul Bradshaw

Founder of Help Me Investigate. I'm a visiting professor at City University London's School of Journalism, and run an MA in Online Journalism at Birmingham City University. I publish the Online Journalism Blog, and am the co-author of the Online Journalism Handbook and Magazine Editing (3rd edition). I have a particular interest in Freedom of Information and data journalism.
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3 Responses to Worth investigating? “Student investment” and student accommodation

  1. Paul Bradshaw says:

    Claire Miller in Cardiff (Wales Online) has an interest: https://twitter.com/clairemilleruk/statuses/319729914595127297

  2. Paul Bradshaw says:

    Claire adds (https://twitter.com/clairemilleruk/status/319837742550892544): “Also just thinking, maybe look at council tax exemptions to see if halls are having an effect on where students live”

  3. The <a href=" http://propertymarket-investment.co.uk/documents/KF%20Student-Research-2012.pdf. Knight Frank review also highlights some of the reasons why student property investment ‘has outperformed other property investment class’ and remains buoyant for the future.

    ‘The NUS/Unipol Accommodation Costs Survey, 2012/2013, reveals that the average weekly rent for a room in university owned accommodation in the UK doubled over 10 years’

    A lot of busy professionals, like you, have purchased student property investment because they felt comfortable with the fully managed service and the solid rental returns.

    There is also evidence that that student buy-to-let studio in Nottingham are renting between £130 and £162 per week. See below.

    [b]Property Name[/b] Type Income
    Mansion Square . Classic Studio £162 p/w
    Mansion Studios . Classic Studio £129.50 p/w
    Talbot square . Studio £ 130 p/w

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