London student real estate market needs more houses

December 9, 2008 by OPPE News

photo credit: jontintinjordan
London could become more of a target for investment property landlords after a study found there is not enough student accommodation in the UK capital.

According to consultancy firm Knight Frank, London needs at least another 100,000 student bedrooms, with many of those looking to study in the city not able to find university or private accommodation.

The firm also said the current financial slowdown presents an opportunity to expand the student property stock, seen as less risky than more traditional residential builds.

Knight Frank said:

“The whole pipeline for new university and private sector student accommodation is currently smaller than the growth in total student numbers in 2008 alone.

“The economic window of opportunity for student accommodation is bolstered by falling site prices and declining construction costs.”

The company also identified some student living patterns, revealing most do not live in the same borough as their place of study.

Knight Frank also identified the boroughs where there are very high concentrations of people in higher education – branded ’studentification’.

Camden, Tower Hamlets and the City of Westminster made up the top three, with all having more than 28,000 full-time students as residents.