The Ideal Option for UK Expats and Foreign National Investors: The Student Housing Market
|Created At:||14 February, 2023|
|Created By:||Allaa Ashraf|
In the UK, there are a record number of full-time students. There is a severe shortage of purpose-built student accommodation. Therefore, more and more students are turning to the private rental market for housing. The private rental market is experiencing a stock shortage, driving up rental property rates. With this, UK expats and foreign investors are able to diversify their holdings.
There are now 2.2 million full-time students in the UK. According to this figure, there are three times as many students as beds in purpose-built student accommodation. Therefore, the private rental market must step in to fill the gap. According to Stuart Marshall, CEO of Liquid Expat Mortgages, "the student sector has been steadily expanding." The last few years have seen record numbers of UCAS applications and some of the highest acceptance rates, so there is no sign that this trend is slowing down. Students require assistance finding apartments in the highly competitive private renting market, emphasising the need for affordable purpose-built student housing.
Stuart Marshall says, “An expert UK expat or foreign national mortgage broker is perfectly positioned to advise UK expat investors on how best to integrate purpose-built student accommodation into an investment portfolio.”
Universities are taking desperate measures to provide housing for students, as seen by the placement of York and Bristol students in adjacent towns and cities, the conversion of common areas into dorm rooms at Edinburgh University, and the housing of Glasgow University students in hotels.
Investors from the UK and other countries interested in the market for purpose-built student accommodation should concentrate on those regions where the supply problem could be better to maximise their earnings. This will result in a large student population, a decline in the number of listings for student housing, and rapid rental growth. London, Manchester, and Salford, which all have rental growth above 15%, are the cities that fit these criteria and have the most substantial rental increases. Along with Manchester, Birmingham has a high percentage of full-time students and has historically attracted both customers and investors.
Due to a national shortage of student housing and record student enrolment, student rental development is strong across the majority of the country, particularly in major educational hubs. According to Savills, rental growth has exceeded 7% in the past year, even in areas like Nottingham, where the number of students is down. This is specific to the student housing industry and demonstrates what a solid investment student housing can be, especially when included in a more extensive investment portfolio.
"An expert UK expat or foreign national mortgage broker is perfectly positioned to advise UK expat and foreign national investors on how to best integrate purpose-built student accommodation into an investment portfolio while utilising some of the excellent UK expat and foreign national mortgage products available," states the expert mortgage broker.