Student accommodation top of the investment class
JLL predict student accommodation is to be top of the real-estate investment asset class
On Monday 18th August, in line with A-Level results day across the UK, professional services and investment management company JLL, released a statement indicating their prediction that ‘student housing [is] to be top of the [real-estate] asset class.’1
The company’s Student Housing team has predicted ‘strong occupier and investment demand across the sector.’
Further predictions indicate a forecasted growth of up to 4% in London, and up to 5% elsewhere in the UK regional market.
Even across the prime end of the market, yields are projected to remain stable, with high occupancy for the next academic year.
A Director in the Student Housing team comments in the report that “While it is too early to have definitive views on the impact of Brexit on the student housing sector, it is likely to remain more resilient than other sectors. This is due to the continued attraction of the UK University market, coupled with the depreciation of sterling which will make the UK a more affordable destination to study for international students. It is also important to remember that EU students make up only 6% of students.
“We are currently seeing good levels of investment demand following the referendum and generally transactions we are working on have seen little impact as a result of the Brexit vote.”
We at Property Moose are pleased to hear about the predicted resilience of the student accommodation sector in the UK. Student demand also underpins large parts of the HMO (House of Multiple Occupancy) market in the UK.
The latest opportunity on the investment platform is a co-investment partnership with a large Private Equity firm, which allows members to invest in a student accommodation portfolio spread across three university cities.
Check out the student accommodation portfolio, PM SPV 56, currently available on the site!
Disclaimer and Legals
Property Moose does not provide any advice in relation to investments and you must rely on your own due diligence before investing. Please remember that property prices can go down as well as up and that all figures, rates and yields are projections only and should not be relied on. If in doubt, please seek the advice of a financial adviser. Your capital is at risk if you invest. This post has been approved as a financial promotion by Resolution Compliance Limited.
Property Moose is a trading name of Crowd Fin Limited which is an Appointed Representative of Resolution Compliance Limited which is authorised and regulated by the Financial Conduct Authority (no: 574048).
Source
1 - http://www.jll.co.uk/united-kingdom/en-gb/news/2719/making-the-grade-jll-predict-student-housing-to-be-top-of-the-asset-class