Student property still a solid investment

Recent research suggests a total of £5.3 billion is likely to be invested in the student accommodation sector in 2017, up 17% from 2016.

The UK student sector is now a recognised global market, attracting hastily rising levels of investment from overseas, which appears so far unaffected by the Brexit vote.

Overseas investors have been putting their money into purpose-built accommodation projects, such as Abacus House and the three new builds at the gyratory here on Lewes Rd. These investments from overseas have almost doubled their market share in the past two years, up to 64 per cent in 2016 from 35 per cent in 2015. 

Much of that international money came from just two investors in Singapore, Mapletree and GIC. GIC is one of the most experienced investors in the UK student housing sector. Their continued investment in 2016 is a huge vote of confidence in the sector.

It is predicted that the development pipeline for purpose-built student accommodation will fall dramatically across parts of the country in 2016.

The Brexit doesn’t appear to have impacted investors’ appetites. It’s estimated that £2.1 billion of student housing stock traded in the second half of 2016, against £1.9 billion in the first half of the year. The research states that a growing number of landlords are looking to take advantage of rising rental values in the student property sector.

We currently have 3 student properties for sale in Brighton, all achieving healthy rental yields. Have you considered expanding your portfolio? We can recommend a couple of great financial advisors who can advise you on possibly freeing up some money from your current assets to acquire another property or two. Give us a call for more details.