Positive outlook for student rental market in 2013

The student rental market is expected to undergo growth in 2013, according to Knight Frank.

It has released its forecast for the sector, which projects a total investment return of 9.2 per cent over the next 12 months.

This reflects an increase of 0.4 per cent on London returns to 9.1 per cent, caused by rising rents in an undersupplied market.

The real estate consultancy predicted average rents will rise by three per cent in the capital and by 2.75 per cent in the regions from September 2013.

“Student property is one of the most successful real estate asset classes, thanks to stability of demand for student bedrooms from all over the UK,” commented James Pullan, head of Knight Frank student accommodation.

Mr Pullan added that the market is still structurally undersupplied in all core university cities.

He said the positive outlook for student accommodation is due to steady rental growth in all key English university towns, continuing undersupply and the established perception of the UK as a top global knowledge centre.

Article taken from www.rman.co.uk
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