17 January 2012

London Student Accommodation Investment

Investors looking to expand their property portfolio with high yielding properties in London should consider student accommodation. The annual student report from Knight Frank shows total returns almost doubling and average total returns standing at 11%.

 

London remains top of the list in overall ranking for students in the UK in the 2010/2011 academic year and research demonstrates students with an en-suite room paid an average of £210 a week in 2010/2011.

 

Many universities have now applied to reduce their fees from the £9,000 regime to maintain their share of the market and to appeal to students considering further education. We are also seeing a continued and increasing demand from overseas students. Overseas students have always paid fees and so this area of the market is unaffected and with fees in the USA and Australia nearly double those here, the UK remains very competitive on the global student market. International students have a preference for purpose built, modern accommodation, with good facilities.

 

These purpose built modern student projects provide excellent opportunities to enter this lucrative sector of the UK rental market and are fully managed "armchair investments" designed to offer an excellent alternative to the traditional buy to let property. Principal International currently have a number of superb student projects in fantastic locations such as London, Chester and Leicester, offering excellent net returns.

 

For further details click here.