Student accommodation tends to come with that age old stereotype of being a traditional house share decorated with pizza boxes, empty beer cans and more clothes draped over the radiators and banisters than in an actual wardrobe.
This is something that has been going on for decades (just ask your mum and dad) but the student property market is now changing with students wanting more than an old terrace with a cracked ceiling and crumbling plaster on the walls. With shows such as MTV Cribs highlighting the luxury that many people live in, it is understandable that students want to live in accommodation that is classy as opposed to trashy, especially for how much they pay for rents and tuition and most importantly, alcohol.
Therefore it doesn’t come as too much of a shock that investment into student accommodation has more than doubled this year.
Property advisers CBRE recently said that a whopping £800 million was invested into the student property market in the first half of this year alone compared with £375 million for the same period of 2011.
Investors are taking notice of the fact that students now want more for their money so if you’re starting university this year or next year the type of accommodation that you stay in could be completely different to that of your older brother and sister, even if they graduated just a couple of years ago.
It seems that investors are keen on putting their money in the student property market.
Jo Winchester, Head of Student Housing Advisory, CBRE, said: “There is no shortage of investor demand, but the market is hampered by a shortage of new high quality development opportunities.”
With a high number of both domestic and international students it doesn’t come as too much of a shock that demand for student accommodation is high and occupancy rates currently stand at around 99 percent. There is also said to be a shortage of supply of high-quality, self-contained property so the increased amount of money being invested in the sector will hopefully make way for this.
It looks like students will be saying goodbye to basic and hello to luxury in the near future.