It is vital to choose the right kind of property when making an investment in student accommodation, it has been asserted. Owner of Lettingfocus.com David Lawrenson explained that investors need to be sure that the type of real estate they are considering is in demand among those attending university. But this is not the only factor that needs to be taken into account.
Mr Lawrenson warned that increases to tuition fees could change the way in which students choose their university. "You have to look at the level of demand coming in for that particular education institution where you are buying, because some places are in less demand than others," he explained. Earlier this month, Savills published a report detailing which university towns offer strong investment prospects and which are becoming less desirable.
Yolande Barnes, director of Savills research, commented that first-class locations will continue to perform well, but that there will be more polarisation between the top and bottom ends of the market. London is one of the best locations in which to purchase student accommodation, the firm noted, due to the restricted amount of housing for undergraduates coupled with rising numbers of people going into higher education.