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2 min read

Have you invested in UK’s highest yielding property asset?

2018 02 11 UK asset main

The pool of global “travelling students” is predicted to double to eight million by 2025, with Britain set to attract more than the US, according to the British Council.

In June 2013, the Universities and College Admissions Services (UCAS) figures confirm that the number of applications increased by 3.1% over the previous year. The biggest percentage increases in student applications came from Malaysia with a 25% increase while non-EU applications increased by 6% on average.

In addition, according to figures available for 2015-16, the Higher Education Statistics Agency (HESA) confirmed that there were 2,280,830 students in higher education in the UK – the largest recorded number of British and overseas students enrolled on courses at higher education institutions in the UK.

With a huge pool of demand, new accommodation has to be built and the solution provides an interesting opportunity for investors to join hands with property developers to facilitate the development of purpose built student blocks.

Purpose built student accommodation is the UK’s highest yielding property asset and has seen total investment in the sector consistently increase over the past few years. The sector overtook the US as the largest student property market in 2015 and was heralded as a World Class Asset.

The proportion of international investment flowing into the market has also doubled and accounts for 64% of all activity in 2016 compared with just 35% in 2014.

Matthew Jay, Managing partner at Alliance Investments said “Huge amounts of foreign investment emphasise the strong global reputation of UK student property as a resilient asset and a guaranteed market that is predictable regardless of whatever is happening in the economy”

Student accommodation schemes offer net rental yields of 6-7% on average and are perfectly suited for overseas investors and retirees alike as a steady and guaranteed investment plan.

Alliance Investments, a subsidiary of Property Alliance Group, Manchester’s leading property developer for 28 years has announced their fifth student accommodation scheme called the Laceworks in Nottingham.

A studio-only development of 222 high quality units having panoramic views over Nottingham, the development is 7 storeys in total with the 7th floor set back providing roof terrace access to many of the studios on this floor.

The building provides world class amenities including; 24 hour reception, cycle storage, parcel delivery room, launderette, group and individual study areas, double height “hotel style” reception, games zones, private dining room, mezzanine level quiet sector and “coffee shop style” social spaces.

For more information on Laceworks and other upcoming projects and developments, please click here.

2019 10 25 contact us resized
Mallam Grant
Ginny Wai 2
Conor Armstrong
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