Investment in student accommodation in the UK reached a record £2.7 billion in 2012, a 125% increase on that invested in 2011, new research has revealed.
Despite an overall decline in the number of students, investment in accommodation has risen rapidly over the last three years and is now nearly eight times higher than in 2009, according to figure analysis.
Although the number of student applications and acceptances fell in 2012, capital committed to the sector has grown dramatically over the last 12 months.
The latest 2012 data shows that student housing is outperforming other asset classes by some margin, as it has delivered 9.6% total returns in 2012. This compares to 4.4% for all offices and 2.2% for all retail over the same period.
The market is increasingly dominated by specialist student funds and developers, who are deploying large amounts of capital in the regions as well as within London, making student accommodation a healthy sector nationally.
As an investment, student accommodation is relatively low risk and provides a secure income. Occupancy levels remain high, especially when compared to the vacancy rates in some mainstream sectors, and most university towns remain undersupplied.
The latest figures highlight further the on going demand for student accommodation across the UK both from those in higher education themselves and investors looking for a lucrative, counter cyclical asset class.
We have seen no let up in the volume of student property enquiries received in 2012 and are aware of the ever increasing numbers of projects being brought to market. Student property remains attractive as an investment where there is an imbalance between supply and demand.
With two large and well respected Universities in Sheffield the city offers great opportunities for potential landlords who are interested in this sector.
If you are an existing landlord or potentially a first time landlord get in touch with Belvoir Sheffield today to take advantage of our vast expertise and experience to ensure you are getting the best advice.
Contact us today on 08452 60 40 90. or email us at sheffield@belvoirlettings.com
Source: http://bit.ly/148Je2F
