The highest yielding student properties appear to be in the north, where property prices are low but still command impressive rents. The sector has benefited from a range of converging education markets, economic and employment trends that have seen demand for purpose-built student developments grow exponentially.
The student property market continues to provide stable and lucrative returns and investor appetite shows no sign of waning, with over £2 billion invested in student accommodation in the UK in 2013.
Demand for university places in the UK remains strong, resulting in a continued oversubscription each year. Overall, universities receive 14 applications for every 10 places available: an 8% increase over the last five years.
Students are increasingly demanding high quality and secure purpose built accommodation with great facilities close to their place of study. And they are willing to pay more than ever for these benefits.
International students are the driving force behind the demand for purpose built accommodation and, with no cap on the number of students who can study in the UK, Knight Frank has forecast that the number of international students in higher education will increase by 15%-20% over the next five years.