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Student accommodation 'offering strong returns'



Property investment advice from one national estate agent suggests student accommodation is the place for landlords to look.

Regional cities with multiple higher and further education institutions, such as Southampton, are a "sound investment" thanks to strong student demand.

Rents paid by students outside of London were up four per cent in 2011, according to Knight Frank, while rental returns were above ten per cent.

James Pullan, head of student property at the firm, explains: "Limited supply coupled with rising global interest in the UK's educational excellence points towards further strong rental growth in the sector."

Peter Mindenhall, researcher at IPINGlobal.com, agrees that the student rental sector is "very strong indeed".

He adds: "Specialist property developers have become very aware of the sector – hence the rise in the volume of projects available."

According to Knight Frank, the number of students studying abroad increased five-fold between 1975 and 2008, with that figure set to more than double by 2025.

Posted by Alex McLeanADNFCR-1678-ID-801267099-ADNFCR
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