The UK student housing sector has evolved into a mature and globally recognised investment, according to a recent Savills report.
Purpose-built student accommodation has enjoyed a robust recession as student numbers increased to record-breaking levels due to a poor employment market encouraging people to seek higher education.
Last month, DFT reported how lenders believed more investors were seeking finance for purpose-built student accommodation.
Investment into purpose-built student accommodation only just fell short of its forecast for last year with £2.45bn of assets traded, representing a 23% increase on 2013.
Already the first five months of 2015 has seen £4.2bn invested - a record high that is already 70% above last year’s level.
Savills has seen yield compression across all sub-markets especially in London where direct let net initial yield is now below 5%.
Returns of 14% are expected for 2015, comprised of average blended yields compressing by 25 basis points and rental growth of 3.5%.
The UK student housing sector has evolved into a mature and globally recognised investment, according to a recent Savills report… .
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