Edinburgh, Scotland -- (SBWIRE) -- 02/08/2013 -- Student investment accommodation is an asset class that is “safe as houses” says UK property expert.
Peter Grant, CEO of Edinburgh-based Grant Property, adds: “It is no secret that the UK higher education system is oversubscribed with only 10 places to every 14 applicants. In 2011 alone there were 7.75 per cent more students accepted into university compared to 2007.
“With the increase of student placements comes a strong demand for good accommodation. At present the availability of HMO properties does not mirror the volume of students taking up courses in UK universities, which is why investors are snapping up investment properties. Demand has reached fever pitch, meaning investment yields are up and rents continue to rise in line with inflation.”
According to CBRE (a Fortune 500 property company), in the first half of 2012 almost £800m was invested in student housing in the UK, which is more than double the £375m invested in the same period in 2011. Occupancy in Grant Property is currently sitting at 100% in prime areas as there is a shortfall in private rental homes in all major UK cities.
Moreover, overseas applicants demonstrate that the recent increase in university fees has had no bearing on the student investment property sector since applicants from abroad snap up the places others simply cannot afford.
“There is little to no risk involved in investing in this kind of asset class because there will always be students waiting with baited breath to snap up a decent home during their studies.
“My suggestion to property investors would be to ignore the negative headlines about student fees going up when thinking about renting out your portfolio. There will always be high demand for student accommodation in the UK because it is home to some of the most sought after universities in the world and students from overseas are quite literally falling over themselves to get an education here. That coupled with the weak pound is making it nigh on impossible to see a disadvantage for foreign students to come to Britain. This reliability is exactly what investors are looking for,” continued Grant.
For further information on Grant Property contact the head office: 0131 220 6360 or visit www.grantpropertyinvestment.com
Further information on CBRE can be found at www.cbre.co.uk
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About Grant Property
Grant Property is an ARLA registered letting agent and specialist in helping people invest in residential property.
The company has an unrivaled track record in providing property management solutions to landlords based both within the UK and overseas.
Since its inception in 1997, founder Peter Grant and wife Colette have built the company from the ground up. The duo developed the organization based on an ethos of stepping into the customers’ shoes and delivering a service suited to their individual needs.