Student accommodation area of growth in rental sector
Although the residential buy-to-let sector remains quite healthy in the UK, especially in comparison to housing sales and other areas of the economy, some experts believe that the real opportunity for growth lies in student accommodation. Despite recessionary times, enrolment at British universities remains strong and even shows signs of increase. For example, according to some estimates there are 40,000 more Britons enrolled in universities across the country this academic year than there were in 2007/2008. This also means that there is a growing need for budget, student housing, especially in light of the fact that many students are either unable to find room in on-campus dormitories due to space restrictions, or would simply prefer a higher degree of independence.
According to Kevin Chrisp, representing EC Harris, there is an increased interest in off-campus housing, and this sometimes takes the form of privately-operated and owned student halls. Chrisp believes that there is a high level of growth potential in the private student housing sector, and this may become one of the most prosperous sectors of the larger buy-to-let market. In addition to traditional, off-campus halls, turning older buildings into student flats might also serve as good investment opportunity. In this case, two to three students can share a single flat, usually comprised of two bedrooms, opening onto a common kitchen area.
Thank you to the Birmingham Post for the initial report.