Posts with tag: students

Surge in international interest in student accommodation

Published On: May 23, 2016 at 9:24 am

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The latest research conducted by The Mistoria Group has shown that there has been a surge in student investment from international buyers.

In particular, there has been an influx of international investors purchasing student accommodation in the North West of England.

International Increases

Data from the investigation has found that sales of student property to international purchasers is up by a whopping 185% year-on-year.

The largest rise has come from investors in Hong Kong, where yearly numbers have trebled. India recorded rises of 220%, the Middle East 130% and Singapore 90%.

In addition, the research shows that international markets are opening in Canada and Australia, where demand is spiralling.

London has traditionally attracted overseas interest in student markets, with Kuwaiti, Qatari, Saudi and Iranian investors extremely prominent. The Mistoria Group suggests that student property is becoming more and more attractive to overseas investors due to the high yields and occupancy rates offered in the capital.

‘Exponential growth’

Mish Liyanage, Managing Director of The Mistoria Group, noted, ‘we have seen exponential growth in demand from international investors wanting to purchase student property. Although many investors are attracted by the high performing yields of houses of multiple occupation (HMOs), the UK’s outstanding educational system is a key part of the attraction. Many international investors want their children to have a school or university education in UK and they will buy a student property as a base for their children.’[1]

‘International investors have always considered the UK property market to be one of their favourite asset types. It offers investors safe and secure returns and we are expecting to see continued growth from international buyers,’ he continued.[1]

Surge in international interest in student accommodation

Surge in international interest in student accommodation

Estimates

Mr Liyanage went on to say, ‘The Bank of England has estimated that the number of UK homes sold to international buyers is about 3% across the whole market. We estimate that this is going to continue to rise over the next 5-10 years as the UK property market out performs many other markets for yields and capital growth.’[1]

‘Over the last 5 years, student properties in the North West have generated yields in excess of 13% and geared yield in excess of 35% in Salford and Liverpool.  An HMO property can provide an 8% minimum cash rental yield and a typical 13% total cash yield, including 5% capital appreciation.’[1]

Concluding, Liyanage claimed, ‘our research shows that the North West provides greater returns than any other region in the UK. This is fuelled by the massive regeneration taking place in Manchester, with the proposed High Speed 2 (HS2) high-speed railway between London Euston and the North West to be completed in the next 15-20 years.’[1]

[1] http://www.propertyreporter.co.uk/landlords/student-property-sees-surge-in-international-investors.html

 

Soaring student numbers driving rental shortage

Published On: April 6, 2016 at 10:51 am

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Record numbers of university students looking for rental accommodation has led to a distinct lack of affordable rental properties.

That is the main finding of a report from the Mistoria Group, which says that there is a severe shortage of accommodation for this group.

Highs

Last year, the Government raised the cap on the number of places universities are able to offer by 30,000. This in turn has lead to increased competition between institutions.

According to UCAS, the total number of university applicants reached a record high in the previous academic year. Recent figures show a 3% rise in the number of year-on-year applications.

The largest growing group in recent times was non-European Union students, with numbers rising by 50% in the last decade. There has also been a distinct rise in UK student numbers during the last 20 years.

Competition

Data from SpareRoom.co.uk shows that up to 22 students and professionals competed for each room available in university towns and cities in 2015. Only 40% of rooms in the top 25 UK university cities are available to students.

The most fierce competition was seen in Edinburgh, where 22 people battled for one room. In Oxford, 100 students had no accommodation at the start of the new academic year, with 15 people searching for every available room.

Changing pace

Mish Liyanage, Managing Director of The Mistoria Group observed, ‘unfortunately, university managed accommodation has not kept pace with the growth in student numbers and this is driving increased demand for HMOS and PSBAs in many UK towns and cities.’[1]

‘Traditionally universities were responsible for providing good quality student accommodation. However, over the last ten years, demand for university accommodation has outstripped demand and the private sector has supplemented some of the shortfall, ‘Liyanage continued.[1]

Soaring student numbers driving rental shortage

Soaring student numbers driving rental shortage

Robust and Lucrative

Liyanage went on to say that, ‘the student property is a robust asset class. Since 2011, student accommodation has outperformed all other traditional property assets and has been the strongest growing investment property market in the UK. It has continued to be one of the most resilient investment sectors, with rental incomes and property values remaining stable, or increasing. The attraction of the student accommodation sector has been driven by structural undersupply and positive rental growth year-on-year.’[1]

‘Without doubt, the student rental market is the most financially lucrative for investors and landlords if it is managed well. An investor can currently buy a four bed HMO in a good location for students and professionals, fully refurbished and furnished and tenanted for the coming year, for less than £150,000 in the North West based on 2015 prices.’[1]

Concluding, Liyanage said, ‘Investing in student HMO accommodation offers a long-term investment option, as the property is highly likely to be in constant demand throughout the calendar year.  Typical rents are significantly higher for student properties, than a comparable buy-to-let property in the same city.’[1]

[1] http://www.propertyreporter.co.uk/landlords/record-student-numbers-fuel-rental-property-shortage.html

Surge in student property investment to start 2016

Published On: March 15, 2016 at 11:52 am

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Student property is in high demand for buy-to-let investors ahead of the stamp duty changes in April, according to a new report from The Mistoria Group.

The student property specialists has revealed investors have been surging to complete deals by the end of the month, in order to avoid the 3% surcharge.

Top marks for investment

Research from the report shows that sales of student property in the North West has risen by over 30% already in 2016, in comparison to 2015. Over half of buy-to-let landlords investing in student property are from the South. Interestingly, one third are overseas investors, with the remaining 20% located in the Midlands and in the North.

In recent times, student housing has undergone a period of change. Higher rents has brought greater expectations from student occupiers, with many looking for luxuries such as TV’s, Wi-Fi and built in amenities as part of their rent.

What’s more, the abolition of a cap on student numbers has also led many universities to be mindful of an increase in enrolment numbers. Advice for landlords would be to seek out more high-quality, affordable student accommodation.

Rush

Mish Liyanage, Managing Director of The Mistoria Group noted, ‘we have seen a rush of investors wanting to purchase student property over the last quarter and we anticipate that demand for student property will continue to grow significantly in 2016 and beyond.’[1]

‘Since the birth of the buy-to-let mortgage 18 years ago, student accommodation has outperformed all other traditional property assets and has been the strongest growing investment property market in the UK,’ he continued.[1]

Surge in student property investment in 2016

Surge in student property investment in 2016

Yields

Liyanage also said that, ‘over the last 5 years, student properties in the North West have generated yields in excess of 13% and geared yield in excess of 35% in Salford and Liverpool. Our research shows that the North West provides greater returns than any other city in the UK. This is fuelled by the massive regeneration taking place in Manchester, with the proposed High Speed 2 high-speed railway between London Euston and the North West to be completed in the next 15-20 years.[1]

Concluding, Liyanage observes, ‘A HMO property can provide an 8% minimum cash rental yield and a typical 13% total cash yield, including 5% capital appreciation. The average gross cash rental yields for the student property sector in the North West of England were 8.1% for 2015.’[1]

[1] http://www.propertyreporter.co.uk/landlords/stamp-duty-hike-spurs-student-property-surge.html

What do students require from their rental accommodation?

Published On: March 12, 2016 at 12:04 pm

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A new survey has uncovered what students really want from their rental accommodation.

Investing in student property is still popular amongst buy-to-let landlords, who are enticed by the thought of substantial rental yields, low void periods and manageable tenants.

Students Needs

Research conducted from 500 tenants by the Mistoria Group revealed students’ top requirements from their housing to be:

  • Safe and secure accommodation-89%
  • Fast broadband connection-88%
  • A washing machine-76%
  • Close proximity to university campus-72%
  • High-quality accommodation-59%
  • Good proximity to local amenities-47%
What do students require from their rental accommodation?

What do students require from their rental accommodation?

Worries

The cost of going to university is currently at its highest ever level. It comes as little surprise then to learn that students’ greatest concerns are to do with financial issues.

These top financial worries were found to be:

  • Cost of food-66%
  • Public transport fees-42%
  • Mobile Phone bills-40%
  • Energy costs-14%

Accommodation

Mish Liyanage, Managing Director of the Mistoria Group, said, ‘our data shows the vast majority of students want to live in high quality, shared accommodation, with good internet access and affordable bills. We also know from previous research that the overwhelming majority of students (80%) want to live in shared accommodation with friends. Only 5% want halls of residence and just 3% of students want to live in a self-contained room or flat.’[1]

‘If landlords and investors provide the right type of property, they will be able to attract lucrative students,’ Liyanage continued. ‘Student accommodation offers investors a number of attractive features such as high yields as students settle for less space than other tenants; high occupancy; and it is neatly counter-cyclical, as more people go to university during economic downturns.’[1]

[1] http://www.propertyreporter.co.uk/landlords/what-do-students-actually-want-from-their-rental-accommodation.html

 

London Students Protest Against Rising Accommodation Costs

Published On: January 30, 2016 at 2:42 pm

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Students at a university in London are refusing to pay rent in protest against spiralling accommodation prices and are demanding a 40% reduction in rent prices.

Over 150 students in two halls of residence at University College London (UCL) are refusing to pay rent amounting to more than £250,000. The Cut the Rent campaigners say they will not pay until UCL meets their demand for rent to be cut by two-fifths.

An accommodation representative and a campaign organiser, Angus O’Brien, explains: “The cost of rent has gone up dramatically and it’s preventing people from studying at university. This is a massive problem across London and the country. We are showing that something can be done about rising rent prices; our action could be the start of something much wider.”1

Campaigners claim that rents at UCL have increased by around 56% since 2009.

To rent a room in Ramsey Hall, one of the halls of residence affected by the strike, it costs £158.97-£262.43 per week. At the other building, Max Rayne House, rent is £102.97-£232.40. It is one of the cheapest halls at the university.

Nyima Murry is a 19-year-old first year History of Art student. She says: “I’ve struggled massively with the cost of rent. I’m not from a wealthy background and last term, I had to work two jobs, which really affected my studies. I can’t afford to eat if I don’t work. Studying is becoming about your background and how much you’re earning, rather than your ability.

“Many people I know are putting off moving to London because they can’t afford to study here. I’m striking so that future students have the opportunity to study at UCL on their academic merit, not because of their financial background.”1 

This latest protest follows another campaign at UCL last year, where students were collectively awarded £400,000 in compensation over a dispute against noise and a rat infestation.

The Cut the Rent campaign was set up last year. It says it previously raised the issue of increasing rents with the university, as well as setting up a petition and organising strikes against poor living conditions.

One of the campaigners, 22-year-old David Dahlborn, a third year Eastern European and Jewish Studies student, hopes to bring wider change.

He says: “This strike is extraordinarily significant. Education is becoming unaffordable because of tuition fees and rent. There’s also a housing catastrophe going on in London and a student debt crisis. It’s important that we succeed, because we need to change things.”1

The Vice President of Welfare at the National Union of Students (NUS), Shelly Asquith, also comments on the situation: “I take my hat off to the students at UCL who, for the best part of a year, have mounted a militant and successful rent campaign. Now they are taking their demands further and asking for a cut in rent. This is not unreasonable when the rent in London is more than 100% of the maximum loans and grants available for students. The UCL Cut the Rent campaign is right to point out that accommodation costs are equating to social cleansing of working class students from education. NUS fully supports the campaign.”1 

A UCL spokesperson has defended the rent rises, saying that the university’s prices are competitive for the capital: “We are seeking dialogue with the Cut the Rent campaign to discuss the issues and set out how the finances of UCL accommodation work. While we understand the concerns around the cost of accommodation in London, it is inaccurate to suggest that UCL accommodation is making a profit for the university.

“All of the money that UCL receives in rent is ploughed back into residences. While the proportions may vary year-on-year, we invariably spend more on residences than we receive in rental income.

“We make every effort at UCL to keep rents as low as possible, which is a difficult challenge considering our central London location. Our rents are competitive in comparison with equivalent London institutions and far less than for comparable accommodation in the private sector.”1 

Do you agree with the students’ campaign, or do you believe the university has set competitive rents?

1 http://www.theguardian.com/education/2016/jan/25/london-students-refuse-to-pay-rent-and-demand-40-cut

Students pay more in rent at top Universities

Published On: August 13, 2015 at 2:39 pm

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With thousands of A-Level students receiving their results today, many will be looking forward to beginning University courses in the Autumn.

To mark results day, Accommodation for Students has released its annual report that focuses on the cost of student accommodation.

Rents

Data from the analysis indicates that student accommodation markets have remained fairly steady, with a very modest average rent increase of £1.43 from 2014 to £82.09.

Interestingly however, the average rents table show that students attending six of the best Universities in Britain (Cambridge, Oxford, Imperial College London, London School of Economics, Exeter and The University of Surrey) are likely to have to pay between £20 and £58 more per week than the national average.[1]

Results show that of the top ten ranked university guides listed in The Complete University Guide 2016, only Lancaster University had average rental costs lower than the national average.

Regional differences

There was also found to be firm regional disparities in place, with students in the North of England paying £14.73 less on average per week than those in the South. Students in or near to London pay much more per week on average, with costs found to be £122 higher than the rest of Britain.[2]

Welsh students have the most spare cash in their pockets, with average rents £69.09 per week. Scottish students also have more money for an extra couple of drinks in the Student Union, with weekly rents north of the border totalling £72.81.[3]

Unsurprisingly, London topped the list of cities with the mist expensive weekly average rental values. Academics in the capital pay £140 per week, followed by those in Cambridge (£124), Kingston (£115), Aberdeen (£109) and Guildford (£104).[4]

Additionally, the report revealed the cities where the greatest range of weekly rents were present. These cities are Plymouth, Exeter, Nottingham and Liverpool, where gaps between rents were up to £146. In Plymouth for example, the lowest weekly rent was £39 with the highest £185.

At the other end of the scale, Bolton, Middlesbrough, Wolverhampton, Stockton and Walsall were found to command the lowest amount of weekly rents, with none of these Universities in the top-thirty in the 2016 league table.

Students pay more in rent at top Universities

Students pay more in rent at top Universities

Increases

This year’s largest increases in weekly rents were found in Luton, Bangor and Derby, all of which were up 20% on 2014. These regions all went from providing accommodation at a rental cost below the national average to either above or beyond this figure.

Furthermore, the number of student homes offering a bills-inclusive option was greater than those offering a non-bills inclusive payment. Furthermore, the average extra cost for bills inclusive properties was between £9-£13 per week.[5]

‘It’s great to see that the overall market has remained stable over the last year, this is positive for both investor landlords and students,’ commented Simon Thompson, Director of Accommodation for Students. ‘Unsurprisingly, the north/south divide in rent values remains apparent, just as in the private rented sector.  Naturally rental increases in some areas will be governed by student demand, often determined by what courses are available, but it is interesting to see that there appears to be some correlation between the highest ranked universities and cost of student accommodation,’ he continued.[6]

‘Bills inclusive rental options are increasingly prevalent which shows landlords are reacting to student needs. Anything which helps students to manage their finances is appealing and I think this trend will continue to grow over the next few years as the cost of attending university creeps up,’ Thompson concluded.[7]

[1] http://www.propertyreporter.co.uk/landlords/students-pay-premium-to-attend-top-universities.html