A recent BBC report has revealed a severe shortage of student accommodation across the UK following government relaxation of student numbers in this year’s admissions. This is putting enormous pressure on providers in many locations and in some cases students are being forced to share rooms.
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This situation is unlikely to improve next year, as there are plans in place to completely remove restrictions on student numbers in several institutions.
Strong Demand for Student Houses The lack of student accommodation is not just in university halls of residence – it is also affecting private sector student housing. As a result, landlords are investing in student towns and cities with confidence, because they know there is a strong demand for rooms.
There is evidence to suggest that private landlords will soon be facing competition from corporate investors, who are keen to cash in on the demand for student accommodation in popular university towns and cities such as Cambridge, Manchester, Leeds and Edinburgh.
Corporate Investment in Student Housing Corporate student housing is similar to halls of residence, but generally of higher quality and therefore more expensive.
Despite the interest of corporate investment in the student sector, private landlords can still enjoy high investment returns. HMOs are subject to stricter safety standards, but a lot of landlords find they perform better.