Growth of UK Student Property Sector Leads Experience Invest to Launch New Project Offering Investors 10% Returns p.a.

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Experience Invest has identified the rapid growth in the UK’s student accommodation sector, especially in Liverpool, which has led to the launch of their latest exclusive student accommodation investment which offers investors 10% NET rental assurance per year.

Click on the link below to access the Investment Brochure

"Student housing is top property asset,"

Financial Times, November 2012

According to the NUS Accommodation Cost Survey 2012/2013, private sector student accommodation now controls 39% of the current supply of UK student rooms, which equals a 22% increase over the past 3 years.

The survey, which was conducted over 81% of student accommodation providers, showed an in-depth look into student property trends and the increasing cost of living.

Why has private student accommodation become more popular?
Student accommodation investment has evolved into a a key asset class over the past 5 years with UK transaction volumes reaching £2 billion in the first 9 months of 2012, up by 145% on 2011 (CBRE UK Student Housing MarketView).

In light of this investment, the NUS has commented that, 'Funding for new student accommodation developments has been available because of a general view among investors that the yields from what is now almost a separate asset class outperform yields in other commercial property sectors'.

With an increase in demand for student accommodation investment opportunities from institutional and individual investors, the private accommodation sector has increased its market share in the United Kingdom.

A survey by UCAS, which has tracked the growth of private sector student accommodation for 10 years, also stated that in 2003-04 96% of all purpose-built student accommodation was institutionally owned and managed however, in 2012-2013, the private sector formed 39% of the total supply.

It also revealed that in 2012-2013, private providers will account for 79% of new bed spaces; 58% of which will be directly let into the market and 21% will be covered by nominations agreements.

The Future of Student Property Investment
The way in which students' view halls of residence has also changed rapidly over the past 10 years. Typically, purpose-built student accommodation would just house first year students however, due to the mod cons and high specification of new build rooms, a rising number of students are returning to halls of residence and more so purpose built shared student accommodation built by private providers after their first year.

The NUS survey has highlighted that, 'Private providers clearly accommodate a greater number of returners: 40% Let 26-50% of their stock to returners (compared with only 14% of education institutions) and a further 8% house between 51-75%'.

With an increase in the amount of overseas applicants to UNIVERSITIES IN THE UK (13.7% Rise recorded by UCAS in Jan 2012), a lean towards attracting international students has also had a positive impact on the private student accommodation sector, with a lot of new-build developments specifically aimed at overseas tenants.

As investment in the private sector continues to increase due to the sector's ability to generate high and sustainable yields for investors, private providers will inevitably increase their market share in line with demand from a growing number of students looking for new, purpose-built rooms.

For investors looking for a student accommodation investment in the private sector, London-based property agent, Experience Invest has just launched a new investment opportunity in the heart of Liverpool.

Large 25 Sq. M self-contained studio apartments with kitchenettes are available for £59,950 and will generate 10% NET yields per year for investors, assured for three years.

“We're pleased to launch a new student accommodation investment in Liverpool with the largest self-contained studios currently on the market,” Jerald Solis, Business Development Manager of Experience Invest stated.

For further details contact Experience International by calling + 44 (0) 207 321 5858 or go to the website to request the investment brochure.

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Luke Fitzsimmons
Experience International UK
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