Student Rooms
Capitalise on a traditionally counter cyclical market and benefit from excellent rental return.
The student housing market is continually growing; despite the rise in tuition fees demand for university places remains high and purpose built student properties are one of the fastest growing asset classes in the UK.
You can now purchase individual studios within a purpose built student block at an affordable level and receive excellent rental return, which were previously only available in student HMO’s. The student properties are fully managed and normally maintained by specialist student property managers, providing the purchaser with a fully managed opportunity, without the hassle typically involved with owning a student house of multiple occupation (HMO).
The student housing market is typically counter-cyclical, with increasing student numbers in times of economic downturn and weakening labour markets.
Education is one the UK’s largest exports, with its academic reputation attracting overseas students from all over the world, including the Far East, Middle East and Asia, who expect a high standard of purpose built accommodation. Our tuition fees remain globally competitive, especially when considering those of the USA and Australia.
Due to the decrease in government funding, universities now have a tendency to spend their available funds in their teaching and research facilities, to deliver the best educational programme to their students to compete in the market and optimising their chances of securing employment post-graduation.
This leaves a gap in their budget for improving and extending their own student accommodation that they offer to students, allowing the private sector to capitalise on this gap in the market.
When looking for suitable opportunities, you need to consider the location of the student property in terms of proximity to universities and other educational institutions and local amenities. The local university or college’s expenditure on facilities and courses will also be crucial to identify the on-going demand from prospective students. The changes in the educational institution’s student numbers and their ranking in the national student guides may also be a key indicator.
Principal International® carefully select student accommodation projects in areas that display signs of growing student demand. We offer a selection of fully managed opportunities, ideally situated within close proximity of universities and other education institutions and well-appointed with good facilities, to optimise rental yields, occupancy and capital appreciation.
For further details on our selection of student room projects, please click here.