The student population in London is predicted to increase by 50% over the next decade, with funding for student housing expected to triple and reach £5.7 billion by the end of 2015. The last two years have seen a significant surge in investment in the UK student housing market, with a rise from under £500 million five years ago to £3.8 billion in the first six months of 2015. Figures show that London accounts for £1.5 billion of the increase.
The fastest growing segment has consisted of Non-European Union students and a recent study undertaken by London First highlighted the fact that international students bring in a net benefit of £2.3 billion annually to the economy of the capital. The research also revealed that more students are renting with 28% of London’s student population residing in HMOs.
UK student numbers have experienced vast growth recently and although the supply of suitable student accommodation was traditionally the responsibility of the universities, recent years have seen the majority of new accommodation being supplied by private investors and developers.
London has one of the largest student populations in the world and student housing is one of the largest sub sectors found in the alternative property asset class. This refers to the real estate sectors that exist outside of the traditional market such as leisure, self-storage and student housing. The alternative market is in fact making up an increasing share of the real estate investment sector. 20% of all transactions in 2014 were alternative which reflected an increase of 15% from 2010.
We regularly work with investors throughout London and assist them with purchasing HMO properties or transforming of existing properties into multiple occupancy buildings. With student numbers continuously increasing, there are many lucrative opportunities available for investors and landlords. By turning a property into an officially licensed HMO you can not only increase your income but also add value to the property. As experienced letting agents we can offer you comprehensive support and ensure you make the most of your investment properties in Croydon and the rest of London.
