Investing in student accommodation in the UK

The student accommodation market has seen a flurry of activity since 2004 with institutional investors being the most active. Wealth managers who are seeking high yielding and secure real estate products turn to student accommodation, high yielding and constantly in demand.

UK real estate assets are considered to be solid and secure investments attractive to wealth managers and popular with clients.

With NET yields starting a 5%, student accommodation also offers an attractive alternative investment proposition to the more traditional Prime Central London (PCL) residential market.

By the end of November 2014, a total of £2.369bn of capital has been invested in 2014, up from the £2.2bn invested in 2013. The increase in investment can be attributed to the ever-rising new undergraduates for the 14/15 academic year (449,730). This is the highest ever intake which suggests that the increase in tuition fee has not dampened the appetite for university education. Further to this, the number of ‘Other EU’ and ‘New Non-EU’ entrants has seen a 57% increase since 2004.

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