How the student accommodation market has grown

Student accommodation has shown tremendous rates of rental growth, even during economic downturns, and is a market predicted to soar even further in the years to come.

There is a widely reported structural undersupply of student housing in relation to demand, making ‘now’ the ideal time to jump on the student housing bandwagon and invest.

Despite increased tuition fees and recession, student accommodation has demonstrated great resilience, largely due to the strong appetite for higher education that drives students on.

The UK also remains the most attractive place in the world for foreign students who want to come to study at universities across the country.

This makes investing in student accommodation a constructive long-term investment, providing regular residual income throughout the year.

To put into perspective just how much the student housing market has grown, between 2005 and 2010, the rental rate increased by 34%.

The increased interest from international students who move to the UK for higher education could be responsible for the ever-widening gap between supply and demand.

Potential buyers can make the most of this demand, renting out property for a good rental price and enjoying high returns from the investment not only today, but also in the long run.

Students have simple requests and amenities for their housing in which you can maximise, making your property stand out and therefore desirable for tenants in the upcoming educational year.

Location is key, and students often like to be in the same areas, close to campus and near everybody, creating sub-communities in local neighbourhoods.

Students also look for double beds, large communal spaces and even double-glazed windows, all factors to consider if you are hoping to provide accommodation to this group.

Researching the popular places for student digs is vital and could shape the way a student housing investment is played out, ensuring long-term success. Students are well known for being low maintenance, easy to deal with tenants, and an investment in property close to the university, could be the revenue you’re looking for in 2016.

There are obviously many factors to consider, but an investment in the student accommodation market is likely to flourish in coming years, and with more international interest than ever, now is the perfect time to invest.

For more information on the student accommodation market call on 0207 096 0125 or email


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