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Is student accommodation no longer an ‘alternative’ investment?
Student accommodation is hugely valuable and an attractive opportunity for investors. The suggestion that it should be recognised as an asset class in it’s own right, not as an alternative investment opportunity should come as no surprise.
The sector offers steady yields for investors and is worth more than £2 billion in the UK. Among those keen for the sector to be treated as an asset class in it’s own right are Brian Lloyd-Jones of Unite Students and Savills who placed the topic in the spotlight in their world research report.
Significantly the student property market has weathered the recent economic downturn with continually high yields. It is proven to offer more consistent yields than residential accommodation as well as low void rates and a solid demand base. This stability has led to a comparison with the commercial property market, itself an asset class.
Knight Frank manage property globally and state that the student housing market in the UK demonstrates the strongest performance of student housing markets globally with an average yield growth of 1.59%.
For investors steady returns and a robust market forecast suggest that viewing the sector as a stand alone asset class is wise.
While much research looks at Britain as a whole the strength of the Scottish market should not be underestimated.
There are more than 100,000 students in Scotland and that number is likely to grow. International students are increasingly educated in English, and keen to continue their education at British institutions
Data collected by UCAS shows that the current growth in the number of students studying in Scottish universities comes from students outside of Scotland coming here to study. This will continue to push demand for student accommodation.
At Cairn we work closely with our investors to develop student accommodation and can help you to add value to your investment. We specialise in property investment in Glasgow, Edinburgh and Dundee and can help investors at every stage of student property investment.
We recognise that when managed correctly student accommodation can offer high returns and have developed a team specialising in HMO development since legislation was passed in 2000. Our team can work with you to win an HMO license for your student accommodation.
The team at Cairn can help you to identify a property, coordinate development in accordance with HMO legislation then let the property and find, vet and educate future tenants as well as coordinating future maintenance.
If you would like to learn more about this sector, would like to find out more about investing in student property or any other aspect of property investment our team are happy to answer any of your questions.
You can get in touch via our website, via email, or by calling us on: 0141 270 7879.