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Can you still invest in UK property during the coronavirus crisis?

Never in the history of the UK property market have we seen such a turnaround in sentiment. In January UK house prices were rising after the Conservative election victory and the expected resolution of the Brexit furore which had been dogging the country for the best part of four years.

Bank of England data has indicated that over 73,000 new mortgages were approved in February – a six year high which is now looking relatively meaningless as an indicator for UK property investment.

March will NOT be reflecting such positive sentiments: according to forecasts from Zoopla, we can expect a 60% decline in residential property sales in the months ahead as the entire UK residential sector goes into deep freeze. For those planning to buy UK property as an investment, especially overseas buyers watching the pound plummet against other currencies, the big question is how to get into this market while it is so cheap?

At the time of writing, the UK is in lockdown with the government advising buyers and sellers to avoid moving. It also means that it is extremely difficult if not impossible to arrange property viewings.

Housing stock still available for property investors

According to life tenancy specialist MacBeale, there is still housing stock available for investors who are looking at houses purely from an investment perspective. However, these are agreed deals which were negotiated prior to the coronavirus arriving in the UK.

Life tenancies are long term investments where the owner of the property is able to acquire it at a considerable discount, but is not able to actually live in it until the life tenant has died or gone into permanent care. They already have considerable discounts attached which are still larger than any discount that could be achieved from the current economic circumstances in the UK.

“All the existing stock price will remain unchanged as the formula for the discount is based on age against open market value,” explains Paul Beale, Director with MacBeale in the UK. “We are already looking to get new property via the secondary market from banks and insurance companies. These won’t be new life tenancies created from the open market, rather they will be existing stock which will be brought back to market.”

Beale thinks that UK house prices are currently holding steady as there are few forced sellers. This may change depending on how long the lockdown continues and its consequent negative impact on the British economy, with knock on impact felt in UK housing prices in Q3-4. With sterling now very weak, however, he reports increased interest in UK property again from overseas buyers, especially from East Asia. “We see this trend continuing,” he adds.

Overseas investors will also be aware that the latest UK budget has introduced a 2% surcharge for foreign buyers of UK property, which will take effect next year. This, coupled with a weaker pounds, is creating a fairly small window of opportunity for anyone living abroad looking at UK residential property as an asset class.

Source: The Armchair Trader

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Property Investment North And South Divide

Successful buy to let property investment can often depend on location – North, South, or the Midlands.

The latest research from peer to peer lending platform, Sourced Capital, has looked at where’s best to invest in bricks and mortar across the north, south and midlands regions of Britain.

Location can be vital when investing in property and regional influences can make the difference between profit and loss, so Sourced Capital has dissected the market based on the value of a property and the total value sold, as well as demand for these properties based on the volume of transactions.

The North-South divide is a very contentious issue but with the Midlands becoming a property powerhouse in its own right over the last few years, Sourced Capital totted up the totals based on: –

  • The North including the North West, North East, Yorkshire and the Humber and Scotland.
  • The South including the East of England, London, the South East and South West.
  • The Midlands including the East and West Midlands and Wales.

The figures show that despite much talk of the Northern Powerhouse, the South remains in pole position where the property market is concerned. In the last 12 months, house prices across the South have averaged £335,567 with £132.7 billion worth of property sold across 401,606 transactions.

The North doesn’t trail by much when it comes to the churn of property sales though, with 333,262 transactions over the last month, although the value of these properties is significantly lower with the average property going for £152,276 with a total value of £52.1 billion.

The Midlands and Wales accounted for the lowest level of transactions at 203,586 and while total value also trailed at just £38,4 billion, the average house price does exceed that of the North at £185,241.

Stephen Moss, founder and MD of Sourced Capital, commented: ‘When it comes to the sheer volume of transactions and the value of bricks and mortar, the South continues to lead the way and while this is largely driven by London, each region provides an attractive proposition when it comes to investing from both a demand and value point of view.

‘However, the North isn’t far behind when it comes to demand for housing and with the exception of the North East, it’s fair to say the property market across the majority of the North and even parts of the Midlands can go toe to toe with the South on transaction volume.’

Source: Residential Landlord

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The best property investing strategy for 2020

Not only is it the start of a new year, but a new Decade, and in a few years time, we will look back at 2020 and realise that it was probably one of the best investing opportunities of this Decade. The question is, are you ready for 2020?

In this first article for 2020, I want to explain why this month (January) in particular is so important and why it will create a huge opportunity for you if you are ready for it. Unfortunately, many people will miss out on this opportunity and I don’t want that to be the case for you, so please make sure you read this article carefully to really understand the opportunity in front of you.

By the end of this month, everyone who is a landlord will need to have submitted their personal tax return for the 2018-19 tax year, and paid any tax that is due from the rental income on their property. This will be the second year that people will see and feel the affect of Section 24, which came into paly in April 2017. As I am sure you know, the Government decided that they wanted to change the way that property investors are taxed. What this means, is that if you own property in your own name (which most long term landlords do) and you are a higher rate tax payer (which most people in property are), then you will be paying more tax on your rental income. If your property is owned in a Ltd Company, instead of your own name, then you will not be effected by Section 24, and if you are a lower rate tax payer, then there is no impact, although some property investors will slip from a lower rate tax payer, to a higher rate tax payer, because of the way that rental profit is now calculated.

So what does this mean for you, and why is it the opportunity of the Decade?

Every month my organisation run 50+ local property investors network meetings all over the UK, and so I am I a unique position to have my ear to the ground in 50 locations around the UK to hear exactly what is going on with investors at a grass roots level. I can tell you for an absolute fact, that in 2019 we had far more long term landlord coming to our pin meetings than ever before because they are looking to sell some, or all of their portfolio, and retire early due to the impact that Section 24 will have on them and their income.

In any market you will also have new investors entering the market and some people retiring and exiting the market, but right now there are more landlords than ever thinking about selling up earlier than they have initially planned, because the don’t want ever decreasing return from their property portfolio.

January 2019 was the first time than many landlords realised the true impact of Section 24, when they saw the amount of tax they pay go up, and their accountant will have informed then that things are only going to get worse as the true effect of Section 24 is phased in over a 4-year period. January 2020 will be the second year that people see the effect of Section 24 starting to bite more into profits. This will be the catalyst for even more landlords to seek a solution to this problem and for some of those 1.75m landlords in the UK, I truly believe that early retirement may be the preferred choice for many of them, especially as they have seen tremendous capital growth over the last 10 years.

Whilst Section 24 is obviously very bad news for many landlords, there is always a silver lining in bad news, if you look close enough. For those property investors who want to expand their portfolio and acquire more property, 2020 will be a fantastic opportunity for a number of reasons.

First of all, we will see properties become available for purchase in previously locked down Article 4 areas. In these Article 4 areas, permitted development rights have been removed, so you have to get planning permission to convert a normal house into an HMO (with 3 or more unrelated tenants). However, if you do apply for planning in an Article 4 area, it will be automatically rejected because the local council does not want more HMOs. You can of course appeal and you might get planning permission if it meets all of the criteria, but it is very difficult. However, if you buy an existing HMO in an Article 4 Area, you don’t need to get planning permission. Instead you can just apply for a certificate of lawfulness as long as the property was used and an HMO before Article 4 was introduced in that area and has been continuously used as an HMO. Prior to the introduction of Section 24, in Article 4 Areas, landlords were quite happy keeping their property, knowing that there would not be too much new completion. But now some of these landlords are now considering selling which means that you can get access into theses effectively locked down areas.

The main reason why 2020 will be such a great time to acquire more property is because of the way in which you will be able to add to your cash flow and property portfolio. You see these landlords who decide to retire earlier than planned, have another problem. The main problem is that if they sell all of their properties in one go, they will have to pay a lot of Capital Gains Tax (CGT) on the profit from the sale. The best solution for anyone wanting to sell a number of properties, is to phase the sale over a number of years so that they can claim their personal CGT allowance and so reduce the amount of tax they will pay. But this creates another problem. The landlord will have to hang around until they sell their last property which in fact maybe they would rather be sat on a beach instead enjoying their retirement.

The good news for you, is that there a solution which you can provide these landlords so that they get to sell all of their property over a number of years, minimise the tax, and not have to hang around until the last one is sold. They can do this with the help of an investor like you, who can use Purchase Lease Options (PLOs) to take over the properties and manage them for the owners, with a schedule to buy them over a number of years. This means you get cash flow and potential equity growth on property that you don’t own, whilst providing a fantastic solution to these retiring landlords. You don’t need to have large desposits, or even be able to get mortgages to do this.

The only problem here is the PLOs are a massively misunderstand strategy. Most people who think they know about PLOs, don’t really know about PLOs otherwise they would have does a lot more of them by now. One of the main problems here is that PLOs only work in certain circumstances, namely when the seller does not need the money now and they have what we call favourable mortgage conditions. Luckily for you Landlords normally meet both of these criteria, which is why the strategy works so well for them.

Just in case you don’t know let me give you the basics about PLOs. This is where you enter into a legally binding agreement with a property owner, whereby you have the right (but not the obligation) to purchase their property, for a fixed price (The Option Price) agreed upfront, within a certain time period (The Option Period), and in the meantime you pay them a monthly payment (Monthly Option Fee), for which you are entitled to use the property. There is also a consideration (Upfront Option fee) required to make this a legally binding agreement. This upfront fee can be anything from as little as £1, but can also be several thousand pounds in some circumstances. During the Option Period you look after the property as if it were your own, and take care of all of the maintenance. For example, you might have the right to buy a property, for the current market value of £200k, anytime within the the next 5 years. In the meantime, you pay the owner a guaranteed £600 per month, and take care of all the bills, repairs and maintenance. You could then rent this property out in a way to generate a much higher income, such as an HMO or Serviced Accommodation, and you make a profit on the different between the rent you pay to the owner and the rent you achieve, less all the bills. This is cash flow for a property that you don’t own.

The main benefit for you as the investor, is that you don’t need to put down the typical 25% deposit that you would need if you actually purchased the property. You don’t need to get a mortgage on the property, because you don’t actually own it. You can benefit from positive cash flow during the option period and potential capital grow of the property over the option period. If you value of the property rises from say £200k now, to £250k in five years time, you have the right to purchase it if you want, at the agreed option price of £200k even though it is worth £250k.

How do you find these landlords? Well you can always attend your local property investors network (pin) meeting and ask for referral of landlords who may want to retire, or you can write direct to landlords using your local council list of licensed HMO owners.

I do hop you can see the incredible opportunity you have right now by helping these retiring landlords finding a win win solution

Invest with knowledge, invest with skill

By Simon Zutshi, Author of Property magic and Founder of property investors network

Source: Property118

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Best UK Locations For Property Investment

New research has shown up the best UK locations for property investment, either for pure investment or buy to let.

Lettings platform Howsy, has looked at what UK locations are currently the best place to invest in bricks and mortar, and where is the best location to invest in a buy to let to combine the best of both worlds in tough market conditions.

They looked to find the UK locations with the best property value growth over the last year, where is home to the highest rental yields and where is the best option for a mix of both when investing on your doorstep.

Investment Property UK Locations

For pure property value growth, North Devon tops the table at 15 per cent growth year on year, followed by Merthyr Tydfil and Blaenau Gwent in Wales, both at 13 per cent, along with a third Welsh option in Caerphilly, up 11 per cent.

Camden is the best bet in London with house prices up 10 per cent in the last year, with West Devon, Forest Heath, Rochdale and Monmouthshire all up 9 per cent, and Trafford seeing annual growth of 8 per cent.

Buy to Let UK Locations

When it comes to current buy to let rental yields, the best UK locations list was topped by Glasgow, with a return at 7.5 per cent, with Scotland also accounting for the next best three in Midlothian (6.8 per cent), East Ayrshire (6.8 per cent) and West Dunbartonshire (6.7 per cent).

Burnley and Belfast are home to current yields of 6.5 per cent, while Inverclyde (6.4 per cent), Falkirk (6.3 per cent), the Western Isles (6.2 per cent) and Clackmannanshire (6.1 per cent) complete the top 10.

Founder and CEO of Howsy, Calum Brannan, commented: ‘The face of the lettings sector has changed quite considerably with the advent of technology-based solutions to traditional problems, and now even the most amateur of buy to let landlords can own a home on the other side of the UK and manage their investment efficiently and effectively.’

Source: Residential Landlord

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Glasgow beats Edinburgh for property deals

INVESTMENT from Asia helped the value of commercial property deals in Glasgow exceed Edinburgh for the first time since 2015.

However, the overall value of deals continued to fall in the second quarter, according to the Scottish Property Federation (SPF).

Deals worth a total of £172 million were concluded in Glasgow in the second quarter, up from £104m for the same period last year, compared with £108m in Edinburgh, down £14m.

It was the first time the value of deals in the west exceeded the capital total since the first quarter of 2015, with the market in Glasgow boosted by the £48.4m purchase of 110 St Vincent Street by South Korean investors. The building is occupied by Bank of Scotland.

While deal values rose in Glasgow, the overall value of sales in Scotland slipped to its lowest in five years, at £641m.

SPF director David Melhuish said: “Glasgow was very impressive this quarter, outperforming Edinburgh for the first time in four years against a wider Scottish market that saw a reduced value of sales activity.

“Glasgow’s sales increase was fuelled by a number of £5m-plus deals, totalling £129m, whereas Edinburgh only secured £33m in the same category.

“A notable feature of Scottish commercial property investment in the Q2 period was the rise of capital sourced from Asia, which topped £250m for the first time on record, according to CoStar data.”

By Scott Wright

Source: Herald Scotland

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Investing in property? Make sure you’re doing it properly

For many investors, the finite nature of land translates into making property a safe, steady investment that diversifies a portfolio.

As ever in life though, if only it were so simple as just buying the asset – whether that is a building, an aircraft or a bond.

It’s not just what you buy that matters, it also matters how you buy it. This is especially true of property.

While a long-term, stable play, real estate is an illiquid asset. That means that you have to invest into it in a way that doesn’t lead you exposed to this fundamental fact.

The debacle around Neil Woodford’s Equity Income fund has highlighted how open-ended funds are not best suited to hold such illiquid assets. Open-ended funds by their very nature imply a promise of liquidity through redemption mechanisms funded by cash reserves or asset sales.

Despite the fine print warning of the possibility of “gating” and delays on redemptions, this is not what investors want or expect. If a fund suspends, as has happened with Woodford’s, it’s bad news for end-investors who find their money locked in when they did not expect it.

Ultimately, that doesn’t help anyone. Now the Bank of England is considering banning investors pulling their money out of open-ended funds at short notice if the underlying asset is hard to sell (of course, this includes real estate).

But while I would argue an illiquid asset like property is fundamentally mismatched to open-ended funds in their current guise, this shouldn’t take away from the fact that – when invested in the correct manner – property is a great investment.

Closed-end funds and co-investing are two investment structures much better suited to real estate, because they are not as fundamentally exposed to its illiquid nature.

As global macro uncertainty inches up, real estate is a solid play which investors will want it as part of their portfolio.

One of the prime real estate investment opportunities can be found in the UK’s build-to-rent (BTR) sector, which is far past the stage where it should be labelled as a niche or alternative asset class. It is accelerating into the mainstream, with investment predicted to reach £75bn by 2025.

That surge of investment is being driven by crystal clear market fundamentals.

The UK’s housing supply-demand imbalance has lasted for years, and will likely persist for decades given the past shortfalls in providing new housing.

However, the success of build-to-rent isn’t just down to a lack of homes, it’s about quality as well.

Renting through non-professional landlords remains a mixed experience for many, with the hassles of bills or having basic maintenance arranged often leaving many frustrated.

The sector is not just a London phenomenon – it is a solution that is being applied nationwide.

For regional cities, towns, businesses, and workers alike, this is good news. Build-to-rent can accelerate the supply of homes in regions, encouraging workers to move around more and help businesses outside of the capital attract top class talent.

Our partnership with Moda Living is primed to capitalise on this, with 6,500 apartments in key cities across England and Scotland.

Of course, any discussions about investing into the UK at the moment will have to consider the long-running Brexit saga. The uncertainty caused may make it harder for other assets and services to secure investment.

But this uncertainty appears to have increased institutional interest in build-to-rent, given its stable, income driven investment characteristics, and the clear long-term demand for more homes.

Property is a fantastic investment. Twain was right – they aren’t making any more land. What he should have added though was that you need to invest in it in the right way.

By Mervyn Howard

Source: City AM

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Buy To Let Property Investors Want Fast Track Housing Tribunal

Buy to let property investors are calling for a fast track housing tribunal to help protect their property investments should the Section 21 ‘no-fault’ eviction process be abolished as planned.

Almost four out of ten landlords (39 per cent) would like the Government to introduce a fast track housing tribunal according to Paragon’s PRS Trends Report for Q2 2019 which surveys the views and experience of over 200 landlords.

The Paragon survey comes ahead of a Government consultation this summer, designed to gather views on how best to make the existing Section 8 process work more effectively.

Alongside a fast track tribunal, almost one quarter of landlords in Paragon’s survey (24 per cent) called for a shorter court process, one in seven (15 per cent) would like a guaranteed way to cover their costs and 7 per cent argued for the ability to submit evidence online.

The vast majority of landlords (84 per cent) said they felt the maximum time from serving notice to taking possession should be no longer than eight weeks. It is felt by that a fast track housing tribunal would help to speed the whole process up to enable landlords to regain their properties.

The survey was commissioned after the Government announced its intention to abolish Section 21 in April this year. In its place, it proposes that landlords should follow the Section 8 process which requires them to demonstrate that tenants are in breach of their rental agreement when serving notice.

Director of Mortgages at Paragon, John Heron, said: ‘Some of the main concerns for landlords around a move to the Section 8 eviction process relate to the efficacy of the existing court process. What we see here is widespread support for a fast track housing tribunal that can deliver a fair and timely solution for both landlords and tenants.’

Source: Residential Landlord

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Property still considered the best investment

Some 73% of buy-to-let investors consider property as still the best , least volatile long-term investment when compared to all other asset classes, letting and estate agent, Benham and Reeves has found.

In the wake of a number of government changes to the sector, 66% believe that the government would fail to implement any initiatives aimed to boost overseas investment in order to drive consumer demand.

Marc von Grundherr, director of Benham and Reeves, said: “The government has really gone to war with buy-to-let investors of late and a consistent string of detrimental changes to the sector through stamp duty increases, tax relief changes and a ban on tenant fees has had the desired impact of denting industry sentiment and dampening appetite for future investment due to a reduction in profitability.

“However, for the institutional buy-to-let investor, this is but a mere blip on a much longer timeline and the overwhelming overtones are that while Brexit poses a challenging obstacle for the immediate future, the market remains the investment option of choice with many confident on a return further down the line.

“This is a testament to the durability of buy-to-let bricks and mortar in the UK as, despite a government-backed clamp down, it remains a lucrative business and one that continues to gain the backing of those that are on the frontline.”

With Brexit continuing to dominate the headlines with no end in sight, it’s no surprise that 72% of investors have had their outlook on the property market altered since the vote, with 68% now less confident in the market itself.

With more changes to property and investment laws on the horizon, 80% of those asked could be forgiven with being unfamiliar with the latest changes to the buy-to-let market.

Although it has only just been implemented, the recent changes to Section 21 notices have also had an impact, with 66% of investors now more cautious about investing.

However, opinion is divided over changes to buy-to-let tax relief and whether the sector still provided a good investment as a result, with 49% believing it is and 51% no longer sure.

The current financial landscape has provided some assurance, with 60% confident that rates will remain low over the next five years and while 66% aren’t as confident in an adequate return over this time period, 22% remain very confident, with just 10% not at all confident.

However, with buy-to-let always requiring a long-term investment outlook, this increased to 37% of investors feeling very confident that they will see an adequate return over the next 10 years, with a further 6% stating they were extremely confident and 51% not as confident.

By Michael Lloyd

Source: Mortgage Introducer

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Key UK Property Investment Sectors to Quadruple in Value

A new report estimates the purpose-built student accommodation, build-to-rent residential and retirement sectors will eventually reach a combined value of £880 billion, as private and institutional investors from around identify the huge opportunity in these assets.

Summary:

  • Three of the UK’s biggest purpose-built property sectors are forecast to rise in value by four times their current combined amount
  • Purpose-built student accommodation, build-to-rent residential and retirement property sectors are receiving increasing levels of global investment, particularly from institutional buyers
  • “The fundamental demographic and economic changes supporting these sectors are difficult for investors and developers to ignore”, as changing generational attitudes are helping to drive the development of Britain’s property market

There is a huge growth opportunity for investors in the UK’s large-scale, professionally owned real estate sectors.

That’s the message from Savills, who estimate that three of the country’s largest purpose-built property sectors are set to quadruple in value once they reach full maturity.

At present, the combined value of the purpose-built student accommodation (PBSA), build-to-rent residential and retirement property sectors stands at £223 billion. But, as momentum in these markets continue to build, this will be rise four times to £880 billion.

Although already established sectors, they are still in their infancy in terms of the growth opportunity for investors. As more students, young professionals and retirees demand higher-standard accommodation, in locations close to places and amenities important to their respective demographics, the advancement of these purpose-built property sectors will continue to drive investment levels.

“Common to all these sectors is the recognition that investing in where people live has great potential for investors, particularly those seeking long term income streams,’ said Lawrence Bowles, Savills research analyst.

“The fundamental demographic and economic changes supporting these sectors are difficult for investors and developers to ignore. Institutional interest will continue to grow as these asset classes mature and can increasingly demonstrate their track record.”

Of these sectors, PBSA is currently the most mature, with Savills estimating its value at £51.2 billion. Last year, global investors poured £3.1 billion into the sector, and a further 35,000 PBSA are expected to be bought in 2019. However, while total PBSA unit numbers stands at 640,000, the UK’s student population has increased 9.7% over the last five years, underlining the undersupply the sector currently faces.

Like PBSA, the build-to-rent sector has helped to raise standards in the UK’s residential rental market, with high-quality apartments in key city centre locations, operated by professional management companies.

But build-to-rent is only just at the beginning of its development, presenting investors with huge growth potential. Savills currently values the sector at £9.6 billion, but projects it will be worth close to £550 billion at full maturity and provide over 1.7 million UK households.

Yet, despite their similarities, only a relatively small number of institutional investors operate in both the PBSA and build-to-rent markets. Savills, however, believes this will soon change.

“Given the similar challenges in development and management, we would expect to see more investors expanding their capabilities to cover the full spectrum of operational residential assets,” commented Peter Allen, Head of Savills Operational Capital Markets.

“Student housing investors have the potential to extend their brands into build to rent and use a strong track record in a very established sector to secure favourable finance terms to maximise opportunities in a newer, less mature sector.”

Source: Select Property

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Why student housing is a first-class honours investment

High yields, low risk, and fast returns are just a few of the reasons reasons luxury student housing has become the new essential in any high-net-worth individuals’ investment portfolio.

While many of the UK’s older generation will reminisce of sub-standard housing, and an unlikely chance of functioning heating or hot water in their university halls, increased private sector involvement in the last decade has now dramatically changed this once Dickensian landscape.

Pools and cinemas are being introduced as standard to the already not uncommon features, such as gyms and concierges.

How university is funded appears to be a driving factor in this growth. The rise in tuition fees has created a dominant consumer culture that is affecting how other parts of the student experience are run.

It might have assumed that the increase in tuition fees would mean a tightening up of budgets in other areas, but it’s producing the opposite effect.

Instead, the fee rise has led to a rapid increase in student spending.

Research by Knight Frank suggests that this could be a result of housing becoming a smaller share of overall living costs, meaning students are more willing to increase their expenditure on higher quality dwellings.

Others are raising concerns that students are becoming more comfortable with debt and simply compiling it with their original loans to worry about later.

Either way, the demand and money for quality student housing is there, and investors are competing to provide it.

According to Knight Frank research, as many as a fifth of students were prepared to pay upwards of £160 per week for housing.

Additionally, 19 per cent of the UK’s students arrive from abroad each year, and these overseas students represent a key target of this investment, as they search for a home away from home.

Demand for UK university degrees hasn’t slowed down either, with half a million applications last year, more than have ever been in university education before.

The purpose-built student housing market is believed to be worth around £46bn, with roughly £5bn of new developments being completed each year.

For 2017, figures from JLL predicted that in every £10 invested in the UK commercial property market, the student housing sector would account for an astonishing £1 of it.

Savills now forecasts a 17 per cent increase in investment in student housing for 2018 alone.

The market operates with something of an immunity to economic downturn due to the inelastic nature of the demand and the reliability of student finance.

Its countercyclical nature means that it’s the larger scale developments offering more units that are attracting the most interest, and proving to be the more reliable investment.

With live projects across areas like Birmingham, Bath, Leicester and Glasgow, the UK University towns are increasingly attractive locations for investors to consider.

Unite Students, in partnership with the Government of Singapore’s sovereign wealth fund, bought all 3,000 of Aston University’s on-campus bedrooms for £227m, in the biggest one-off purchase of student housing so far.

In fact, since 2016, sovereign-wealth funds have invested over 15 per cent of their worldwide spending in student accommodation – a number that is continuing to rise.

The supply-demand defect and the changing attitudes of students has resulted in the emergence of investment hotspots in the UK, with institutional and private investors stepping into meet demand.

The trick is having skilled financiers on board to find the right projects, while heading them with reliable developers.

A joint venture approach to development will promise investors quick turnaround builds that are pain-free, and will see some serious returns on investment.

By James King

Source: City AM