The UK market for student housing remains stable and continues to grow - with new projects and large-scale investments emerging on an almost daily basis. Read our weekly round-up of the latest developments and stories in the student accommodation sector:
Aberdeen approves Student Accommodation
A new student accommodation project in Aberdeen has been approved by the local Council. The planned site will provide 196 rooms for the constantly growing number of students at Aberdeen University to meet increasing demands. Developers and builders aim for completion in 2016.
£14 million student accommodation project in Newcastle
GB Building Solution has announced to build two student appartment blocks in Newcastle's city centre, in close proximity to local universities. The project includes over 371 new student rooms and will be completed in August 2015. This is seen as another sign for recovery in the construction sector. The same company is currently working on an additional student hosuing project in the centre of London that will provide rooms for over 550 students.
More Student accommodation in Ulster/Northern Irleand?
With growing numbers of student admissions and the University of Ulster opening its Belfast campus soon demand for student housing is soaring in Northern Ireland. To ease the situation, developers consider applying with plans for new student accommodation projects that could provide up to 1500 new student rooms in Belfast's city centre. However, nothing's set in stone yet as the respective plans are still in the pre-application enquiry process, i.e. they are under informal consideration but must not necessarily turn into actual applications.
Student Accommodaiton: A Safe Investment?
The private rented sector remains the largest provider for student accommodation in the UK according to the NUS, with over approximately 50% of all students living in rooms not owned by their university (only 19% lived in campus halls while the remaining 26% live with their parents). With increasing demand the sector continues to strive and indeed offers attractive opportunities for investments that promise large returns. Three factors seemt to make the market so profitable: firstly, student accommodation properties are generally cheaper than other typs of housing; secondly, due to the high demand for student housing across the country, risks for investors are small; thirdly, yields are higher than in other sub-sectors of the UK housing market. These conditions promote growth in the sector, which has seen investements worth over £4.6 billion in 2013 alone.