Thursday, 26 July 2012

Student Letting - A bright property sector in UK

The student letting in UK as a part of UK property market has undoubtedly outperformed every other property investments. With UK, being one of the most preferred destinations for higher studies, students, around the globe are considering to go there. This is made the student letting, one of the top performing sector.

There are many reasons for the sector showing out performance. The biggest reason is the number of overseas students choosing UK as their destination for higher studies. Now, since these are students, with low budgets, they don't mind living in lower or middle rent bracket houses of UK. Therefore, landlords with smaller property portfolios can now attract such overseas students as their prospective tenants.

These overseas students choose cities, which have great income generating potentiality and the ones which have best universities.

According to one of the UK property consultancy firm, Savills, provides data on the cities in UK which are experiencing a higher level of student letting demand.

The report points Lancashire and Edinburgh as areas experiencing high student letting demands. This was seen in rise in first year applications by 105% at Edge Hill University, Ormskirk, and by around 100% at Lancaster University. Similarly, the Heriot-Watt University, Edinburgh, saw a 100%rise in undergraduate applications.

That side, other UK Universities which have witnessed a 60% rise in their applications and those include Dundee, Huddersfield and Stirling.

"There is a strong likelihood that universities will increasingly seek to avoid calls on capital and revenue arising from their own ageing accommodation and will look to generate capital receipts and improvements to their accommodation from investors through stock transfer. This offers unprecedented opportunities for investors in high-quality university locations not otherwise available to them due to lack of newly built supply. We have analyzed where the best opportunities lie.", said the Savills report.

Further the report suggests that UK will witness a growth in terms of number of students coming from overseas to study there from countries like rest of the Europe, US, India, China and more so, from the developing economies of the countries like that of South America, Africa and Far East.


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