University Accommodation In London Underprovided
Liam Bailey, head of residential research at Knight Frank, has stated that students looking for accommodation in London in order to attend university are being met by a severe lack of supply.
In turn, this has produced a fantastic gap in the market for those landlords looking to build their portfolios in the UK.
The expert suggested that the city of London is the perfect location for investment in student accommodation.
Mr Bailey’s comments come after Savills’ publication of their research, which observed that the opportunities for student accommodation as an asset class are polarising between first class and third class sites.
Although the market will experience some polarisation, those properties in the first class locations are set to perform in the next decade at a standard similar to the previous ten years.
Mr Bailey further advised that potential landlords should keep an eye on the universities that are experiencing the greatest increase in student numbers.
He clarified, saying "The big story really has been the London universities because there has been a huge demand from overseas students for university space in London. University accommodation in London is very, very undersupplied."
Mr Bailey asserted that areas in and around London, especially close to key London universities, are to be recognised as “quite an attractive option” to those looking to invest.
In the same vein, similar investment opportunities are to be found in the surrounding areas of other, large and high profile universities, such as Manchester, Oxford and Cambridge.
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