Investors to spend £900m on meeting demand for student housing
Property investors are set to invest £900 million this year on building London student accommodation as they look to capitalise on a desperate need for digs from those collecting A-level results on Thursday.
Agent Savills predicted the 2018 spend on buying land or existing properties to transform into student housing would be strong despite fears Brexit could hit funding for research programmes, which may mean fewer high-spending foreign students here.
Savills’ James Hanmer said investors view freshers’ accommodation as “a very defensive sector with high occupancy levels and rental growth”.
Roger Lown at agent GVA said planning rules have previously been more favourable for conventional housebuilders. But City Hall’s London Plan envisages 31,000 new student beds could be needed by 2025.
Lown said: “The supply of new property is unlikely to keep pace with new students in London. As A-level results are announced we expect that a significant number of students will struggle to find accommodation.”