Brexit fearing property investors look to student housing

Brexit-fearing property investors are set to plough their cash into London student digs to take advantage of rising rents that freshers will have to pay, a new report has suggested.

Agent GVA has forecast that average London student rents of £221 per week could rise 3% to £227 by 2018.

The firm added that occupancy rates will virtually be 100% owing to a severe shortage of supply.

It cited recent figures that show there are currently some 279,160 full-time students studying in London. In contrast, there are only around 63,673 purpose built beds, which will leave many renters having to turn to the expensive private accommodation sector.

Roger Lown, head of student housing at GVA, told the Standard: "Brexit has spooked conventional asset classes such as offices and retail, but student accomodation in the capital is safeguarded because of the strong cash generating characteristics and its reputation as a safe asset."