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Student accommodation’s property investment appeal is growing

January 28th, 2012

Student accommodation is proving an attractive investment to landlords, in particular in areas with high numbers of international students.

According to Peter Mindenhall, researcher at IPINGlobal.com, despite the introduction of higher tuition fees, investment in the sector has remained strong.

Figures from Knight Frank suggest returns on student property in Central London nearly doubled year-on-year, sitting at 8.4 per cent in September 2010 and 15.1 per cent during the same period in 2011.

Mr Mindenhall said as UK universities become more attractive to international students, the sector becomes “less reliant on the UK’s economy to remain profitable”.

He cautioned that the returns landlords will see are dependent on the management of the property, among other factors.

“Other factors to consider are the universities’ capacity to attract students year after year, and the demographic the university attracts with its courses.

“Universities that traditionally have a high intake from abroad can be expected to show more consistent returns,” he concluded.

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