subject: Student Investment Properties Are On The Rise, But What Do Students Look For In A Home? [print this page] Wi-fi, en-suite facilities and communal areas are the most important features for university students when looking for accommodation, according to the union Unite.
The organisation also discovered that location, security, price and cleanliness are crucial for youngsters searching for somewhere to live close to their place of study.
Ray Withers, CEO of student property investment specialists, Property Frontiers, comments,
Although there has been a very small reduction in student applications this year, most likely caused by the introduction of increased tuition fees, the UK has some of the worlds best educational institutions and we will no doubt see a growth in student applications next year once the dust settles.
Indeed, it is of the upmost importance that we continue to build high quality student accommodation to meet demand and students expectations. Universities alone cannot be responsible and this, he added.
A Unite survey recently found that that 17 per cent of students currently live at home, while another survey of school-leavers carried out at the end of 2011 found that 16 per cent were planning to live at home in 2012-13.
Mr Withers suggested that there is a continuing need for more affordable accommodation to be built in order to cope with surging demand.
The Knight Frank Student Property 2011 report predicted that in the next five years universities will generate 500 million through the disposal of existing halls of residence to the private sector.
Property investment demand for student accommodation is still going strong, according to new research from CBRE which found that over 246 million of student housing investment deals have been transacted in the first quarter of 2012.
In 2011, investment in student housing increased by nearly 50 per cent to over 1.1 billion, the figures also revealed.
Jo Winchester, head of student housing at CBRE, said that university applications are currently 80,000 ahead of the number of acceptances in 2011.
Looking ahead, developers will need to not only consider student numbers and bed-spaces, but most critically the financial strength and popularity of universities in conjunction with the underlying dynamics of the property market. Support from universities together with clever structuring is likely to assist planning and funding solutions for new development, Ms Winchester added.
However, the expert explained that it is still too early to identify which universities will have reduced cohorts in 2012 and how demand for accommodation will be affected in those towns.
Data from university application body UCAS showed that there has been a 5.2 per cent drop in 2012 degree course applicants in comparison to the same time in the cycle last year.
Meanwhile, overseas applications from non-EU countries rose by 13.7 per cent.
A survey conducted by FreshStart Living recently revealed that more than 40 per cent of students said the price of university-owned accommodation is much too high.
But 58 per cent of the survey respondents also said that the hike in tuition fees had not affected the price they were willing to pay for accommodation.
