Student Property Continues to Rise as Sector Passes £2bn for Third Consecutive Year

Posted: 16 December 2014

New figures have revealed that investment in the UK student property sector has reached a record high of £2.37bn in 2014.

The year to date figures compiled by CBRE demonstrate that, at the end of November, the student market had already surpassed last year’s total investment of £2.2bn.

2015 is set to produce even more opportunities in UK Managed Student Investment sector


Managed UK Student Accommodation Investments

As large institutions have taken a greater interest in the growing asset class following its continued success, the size of the transactions have increased. This has helped to boost student accommodation investments in the UK over the past year. The figures have included major institutional purchases from the likes of La Salle Investment Management, bringing the UK student market to a new high with one month still remaining in 2014.

With large student accommodation portfolios such as Liberty Living still on the market, which is currently under offer for £1.15bn from the Canada Pension Plan Investment Board, the strength of the student market looks to continue to grow in 2015.

The report also found that 35% investments in the period since January occurred within London. Whilst there has been a rush from investors to invest in larger university cities, investments which accounted for 64% of those made so far in 2014, there is excellent potential to be found elsewhere in the UK, where student populations are greatly undersupplied and yields are often much higher.

UK Student Property Investments

Two regions where the student accommodation is in demand but remains grossly undersupplied are Burnley and Bradford.

The Holmes Street student studios will be the first purpose built student accommodation to be built in Burnley, which is home to both the University College of Football Business and the Burnley campus of the University of Central Lancashire. Offering a NET rental return of 10% which is assured for 5 years and interest on deposit, Holmes Street is an exceptional opportunity to invest in this undersupplied student market.

Standing just 0.4 miles from the University of Bradford and with more than 37,000 students in the city, The Grand Mill is a unique opportunity to invest in an operational and fully tenanted student accommodation investment. With en-suite pods available for just £39,000, this Victorian mill conversion offers an 8% NET rental return and comes fully managed by a specialist local operator.

For more information on Holmes Street or The Grand Mill, please visit student property section here.

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