Student Accommodation Update

The spotlight has turned on the provision, or lack of it, of student accommodation across the UK.  The combination of student numbers and academic establishments that are growing in popularity, drive demand for rented accommodation and inevitably some locations will be expected to boom in future in terms of student housing while others will struggle to keep up.  Fundamental to this is the quality of the universities a town or city has to offer and this can determine whether it is a good place to buy.  Calculating how many students apply to attend an institution as well as how much property there is available for them to use will help answer whether it is a good spot for investment properties.  Accommodation close to the university with good transport links should ensure a successful rental with a good return.  There are a number of locations in the UK that are experiencing significant difficulties with a lack of student accommodation, not least of which is London which has seen significant change in recent times with overseas students in the city driving the market.  University accommodation in London is very undersupplied and investing in and around London universities has become an attractive option for investors.  Another hot spot for student accommodation is Brighton which has a student population of over 22,000 and with the University of Brighton not being able to guarantee all 1^st year students live in accommodation, competition is hot for each available room.  Specific websites and University services are set up to help deal with the yearly outfall from on site shortages.

Quintain Estates recently sold it's completed student accommodation scheme at Elephant & Castle in London for £34 million today.  Known as Dashwood Studios, located on Walworth Road, adjacent to Elephant & Castle tube station, Dashwood provides 232 student studios and  opened for this academic year. It is 100% let at rents of between of £220 and £280 a room. The asset is managed by Fresh Student Living.