International Students Numbers in UK Higher Education Is Increasing, Resulting In More Demand For Purpose-Built Student Accommodation
The impact of Brexit has lead many people, including investors and property enthusiasts, to discuss the effect it will have on the student accommodation investment sector. This strong preforming asset class has continued to beat all other sectors in the UK, increasing the popularity of this lucrative investment amongst private investors.
A student property investment has become such a fast-growing sector because it takes the leg-work away from the income earner, creating a passive income for anyone who invests. Purpose-built student accommodation investment features a fully-managed service, giving investors the yields they want, without the hassle of becoming a traditional landlord to stressful student tenants. These studio apartments are also a lot more luxurious, attracting international students who want a place to stay with the added class and comfort.
Rising Numbers For International Students Attending UK Universities
Although there has been some uncertainty regarding the stability of the student sector and some studies have shown slight decreases in the number of UK domicile students, where one side has fallen another has quickly risen.
Albeit there has been a slight decrease in UK students, there has been a significant increase in overseas students over the years.
The UK Council for International Student Affairs (UKCISA) released a study of the 2015-16 academic year which stated that there was a large increase in students coming from China to the UK to study in Higher Education. This exceeded all other nationalities and accounted for 91,215 international students across the UK.
The study also showed that 6% of students in UK HE are from within the EU, whilst 14% are from the rest of the world. Therefore, although the percentage of European students our universities accommodate is a lower percentage today than in the years before 2015, there has been an increase in students from other parts of the world beyond the EU since 2015.
In addition to this, a study produced by Higher Education Statistics Agency (HESA) further confirmed the increase in non-EU student numbers. The top counties that contributed to UK student numbers in 2016-17 after China were; Hong Kong (14,075), Malaysia (13,060), Nigeria (6,180), Singapore (6,060), India (5,555), and the US (5,280).
The Demand For Student Accommodation Is Still High
What does this mean for the sector and individual investors?
For investors who are discouraged from investing in the student sector due to the recent year’s decrease shouldn’t be so quick to overlook this promising sector. People are always going to go to university, and no matter what the current state of the UK economy is our universities will remain world-renowned. For now, it seems that student property investments will still be a well-performing sector throughout 2018 and onwards, because to the high demand for accommodation due to the ever-growing number of overseas students.
On top of this, PBSA is appealing to overseas students because they are willing to pay for the high specification, luxury studios to be closer to the university.
Investors should look out for this sector and the progress it is continuing to make. Hesitant people should get their hands on a fully-managed student property investment whilst they can to not miss out on the high yields and demand.