New Report Ranks 14 Towns and Cities of UK as ‘First Class’ Possibilities for Student Housing Investment

According to the latest report of Savills the purpose-built student accommodation in 14 university towns and cities of the United Kingdom has gained a ‘First Class’ranking when it comes to luring investors. That’s not all the report also predicted that the investment in the student accommodation will reach £2.5 billion during this year. That is equal to half of the amount (£5 billion) that has been invested in this sector during past two years.The independent reported that Savills has ranked the following 14 towns and cities of the UK as ‘first class’: Aberdeen,Brighton,Cardiff, Bath,Cambridge, Bristol,Edinburgh,Bournemouth,Kingston upon Thames, St Andrews, Glasgow, Newcastle upon Tyne,London, and Oxford.

The interesting thing about the report is that cities like Glasgow,Aberdeen,Newcastle upon Tyne, Bournemouth and Kingston upon Thames have been moved to the ‘first class’ from ‘upper second’ ranking of last year. Shedding light on the report the research analyst of Savills, Neal Hudson said that the purpose-built student accommodation has proved an attractive investment in the UK’s housing sector. And it will continue to perform well thanks to the ever increasing rental income and strong yield, said Hudson.On this occasion the analyst did not forget to warn the investors, as he said that they should keep in mind that alike other sectors the student accommodation sector is also not free from risk.

The demand for new houses in the UK has reached a level that many believe is not achievable, as each year the country requires 200,000 new accommodation facilities. This can be judged from Knight Frank’s house building report which depicts that only six percent of the home developers believe that the target of building 200,000 houses during each year is feasible.The Head of UK Researchat Knight Frank, Grainne Gilmore said that undoubtedly house builders are more active as compared to the time when financial crisis hit the housing sector. Still it is not possible to meet such a high demand, says Gilmore.

Roughly a third of the home developers believe that maximum number of houses they can build during each year will be no more than 180,000. This rise in demand for student accommodation is not limited to the aforementioned cities and towns of the UK, as things are not too different in Leeds. Where, students not only come from different parts of the Greta Britain, but also from various parts of the world. As a result, demand of student accommodation in the area has surged up and Oasis Properties, a family owned student accommodation and real estate business, is helping them out in finding the right place for living at affordable price.