Property investors looking to add to their portfolios in 2023 have been urged to consider the opportunities afforded by student housing.
Simon Thompson, co-founder of the website Accommodation for Students, insisted now is the right time to dip a toe into student lets.
“There are a plethora of reasons as to why the current climate would act as the right time for individuals to invest in student properties,” said Thompson. “However, the high levels of demand is arguably at the forefront of the argument,” he added.
According to Thompson, the demand for accommodation is high from both existing and future university goers. “There are record numbers of students in Higher Education and approximately 1.7 million that need to find a room near their campus, and just 625,000 bed spaces available in halls of residence, including private halls,” he explained.
“This demand is creating an upward pressure on the cost of rent, with the average rental for a house in multiple occupancy on Accommodation For Students increasing 2.4% between November and December alone,” he added.
Thompson believes the demand is sustainable as student numbers are forecast to rise, but the pipeline of bed spaces in new purpose-built accommodation is not keeping pace with the growth.
“In fact, there are just 17,000 new bed spaces forecast to become available for the 2022/23 academic year,” he said.
Thompson added that the low marketing costs involved with student properties were another advantage.
