The need for more student accommodation has been revealed as students across the UK are sharing single rooms in university provided accommodation.
An investigation by the BBC has shown that the increase in the number of students attending universities this year has led to a shortage of individual rooms. Instead of enjoying the space and freedom of a single room by themselves, many students have found themselves having to share rooms with other students.
This year’s university applications were the first to take place after the government relaxed the limit on the number of student places available at universities. An additional 30,000 places were offered to students this year, with restrictions on the number of places due to be removed for the 2015/2016 academic year.
Many of the UK’s university towns and cities are already undersupplied when it comes to student accommodation and this issue is likely to be exacerbated by the increased number of students in the coming years.
With universities feeling the strain on existing accommodation supplies, students are increasingly turning to purpose built student properties as a solution. With universities continuing to focus on the creation of new facilities and resources as they simultaneously address accommodation shortages, the private sector has risen to meet the demand.
Student developments are helping to alleviate crowded university accommodation and provide property for undersupplied areas. The huge demand for the UK’s universities both domestically and internationally is a large contributing factor in the success of student accommodation investments in the UK. Student accommodation is the highest performing asset class in the UK, offering exceptional yields and steady occupancy, making it an excellent option for investors.
As universities prepare for an influx of students next year, purpose built accommodation will be in higher demand than ever before. At Principal International, we are pleased to offer a number of student accommodation investments that will be opening in time for the start of the 2015/2016 academic year next September.
The Glass Works in Newcastle is an excellent opportunity to invest in the UK's ‘Best Student City’, as voted for by students at the WhatUni Student Choice Awards. With a projected rental return of 9.62% in year 1, The Glass Works is an excellent student property investment.
Holmes Street will be an excellent addition to the undersupplied student market in Burnley, offering investors 10% NET rental return and a 5 year rental assurance. Located just 250m away from the University College of Football Business, it is the perfect location for students in the area.