This week has seen a number of developments in the UK student accommodation sector, most importanly concerning a the growing realisation that there seems to be a significant shortage of available housing options - despite the constanly rising amount of student accommodation projects and investments. Read our round-up below:
BBC Report reveals Shortage of Student Rooms
A BBC report has shown that there is a growing lack of suitable student housing options at many UK universities, due to large numbers of admissions this year. Some campus halls are even forced to put two students in single bedrooms as demand outpaces supply of available student accommodation. In this regard, private rented student houses and rooms become increasingly relevant to fill potential gaps in many university cities and towns.
Student Accommodation Project approved in Newcastle City Centre
To counter this trend many universities and companies invest in student housing projects, in order to be able to supply students with adequate accommodation. One recent example is a student accommodation complex that is to be built Newcastle's city Centre. The new site was just approved by the local Council and will provide 259 student rooms and replace a derelict building on Westgate Road. Property company Centreland and developer VitaBrand cooperate for this venture.
Construction of Student Accommodation in Norwich begins
Work on another notable student accommodation project has just begun in Norwich for the city's University of the Arts. The new student block is worth £10 million and will provide 228 student bedrooms, common areas, and a reception. Alumno Developments and construction company Morgan Sindall are in charge of the project that shall help to increase the number of available student housing options in the centre of Norwich.
Luxury Student Accommodation becomes Priority for Universities
The trend to offer high quality student accommodation continues as more and more universities as well as letting agencies realise that the demand for luxury housing options among students in increasing. This particular section in the upper level of the student housing sector promises great profits for investors and many institutions seek partners for first-class student accommodation projects. However, it seems that investors prefer to fund projects that involve Russel Group universities.
Investing in Student Accommodation Sector remains highly profitable
Research conducted by a leading expert for investments in the student housing sector shows that the market remains highly profitable for investors. Gross cash rental yields went up by 13% in 2014 alone, which continues a five years upward trend. Since the number of admitted students constantly increases - this year saw and additional 30,000 offered place at UK universities - one can expect that the number of student accommodation projects will also continue to grow. The market promises great profits for smart investors in this respect.