Spotlight

UK Student Housing

UK Student Housing
UK Student Housing

10 May 2017 by Jacqui Daly

Investors continue to pay premiums to aggregate greater student bed numbers

■ 68,000 beds traded last year with a total value of £4.5bn. In 2017 we expect this to rise to 75,000 beds trading for £5.3bn, a rise of 17% year on year.

■ Investors are willing to pay premiums for larger portfolios, driven by their need to allocate their investment capital and build scale quickly.

■ Investment from Singapore has grown massively, with GIC and Mapletree spending almost £1.2bn on UK student housing in 2016.

 

■ The General Election presents an opportunity for policy to become more welcoming to international students. If students are removed from migration targets, growth of overseas students in the UK could exceed worldwide growth of 6% per year.

■ Brexit may have intensified appetite for UK student housing. We saw over £2.1bn transacted after the referendum, compared to £1.9bn earlier in the year.

■ Development prospects are stronger this year in prime markets such as Exeter, Guildford and Leeds. They are weaker in cities such as Aberdeen and Liverpool.

Articles from Spotlight: UK Student Housing – 2017

University challenge

10 May 2017

University challenge

The UK student housing market performed well in 2016 despite a difficult set of circumstances

View from valuations

10 May 2017

View from valuations

Investors pay portfolio premiums to secure scale at speed

Global investment flows

The Far East leads the way in UK student investment

In a league of their own

In a highly competitive market, developers will have to be careful when selecting sites

Quality over quantity

10 May 2017

Quality over quantity

Students are moving up the university rankings for extra cash

Values begin to converge

Can student operators deliver and operate Build to Rent?

Outlook

10 May 2017

Outlook

Yields in prime locations will sharpen in 2017

 
 

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Key contacts

Jacqui Daly

Jacqui Daly

Director
Residential Research

Savills Margaret Street

+44 (0) 20 7016 3779

 

Lawrence Bowles

Lawrence Bowles

Associate
Residential Research

Savills Margaret Street

+44 (0) 207 299 3024

 

Andrew Smith

Andrew Smith

Associate
Residential Research

Savills Margaret Street

+44 (0) 207 016 3834

 

Paul Tostevin

Paul Tostevin

Associate Director
World Research

Savills Margaret Street

+44 (0) 20 7016 3883