UK Student Accommodation Investment Guide
News and analysis Location focus
Q1 2016 stment Guide
FAQs UK’s no.1 CALL NOW +44 (0) asset 207 834 1113class1
Welcome
Benefits of student property investment:
Select aspect to cast your vote and view results.
What aspect of student property investment is most important to you?
Welcome to Experience Invest’s
Established market
Assured income in years
Q1 2016 Student Accommodation
Capital growth Interest paid on deposited funds
Investment Guide.
Fully managed
Payment plans
Tell us what you think...
In its third year, the guide has been produced to deliver breaking news and expert information about the UK’s student property market. With over 50,000 unique views, the 2015 guide proved to be a popular source of information for investors looking to invest in the UK’s no.1 asset class. As the guide is online, it is regularly updated throughout the year to ensure that investors are kept up-to-date.
What our investors think... Last year we asked our readers, ‘What aspect of student property investment is most important to you?’
Location
What is student property investment?
Do you have a location in mind? Yes No Skip to Location Guide
How much money do you wish to invest? Below £50,000 £50,000 - £65,000
How does the investment work?
£65,000 and over
Assured returns Increase in annual rental income Can I sell my unit at any time?
VIEW RESULTS
2016 UK Student Accommodation Investment Guide
5
CALL NOW +44 (0) 207 834 1113
Q1 2016
NEWS
WHAT WILL 2016 BRING FOR UK PR PERTY?
Demand outstrips supply READ MORE
Mainstream asset class
READ MORE
Student numbers to rise by 50%
Uni rankings make the UK a ‘stand out performer’
READ MORE
READ MORE
2016 UK Student Accommodation Investment Guide
CALL NOW +44 (0) 207 834 1113
strength in the university sector in general. Quality and popularity of universities across the UK is driving demand for student homes.
The student property market has seen a real rise in the last few years, both in terms of demand from students and the levels
2015, and looking forward to 2016, many expect to see very little in the way of fundamental changes, but with a more subdued performance.
market in 2015, and examine what might
11
applying for courses initially. It was feared that this would be the norm for the market, with the higher cost of studying
of investment from people who see it as a viable way to make strong returns. However, the education sector has But this market can only succeed on the strength of the university market that feeds it. Strong universities across the UK means higher student numbers, and this drips down into demand from students
bounced back spectacularly, and the number of applicants now grows year on year according to UCAS, and has done so ever since it saw that one dip in 2012. For the 2015 to 2016 academic year, UCAS said the number of applications
forward.
was higher than ever before, with 511,730
So what are the positives from the
of these being accepted. This marked a three per cent increase year on year when compared to 2014, as well as a seven per
university sector that are giving student property a boost and pushing it to a
cent rise compared to 2013, and a 16 per cent increase on 2012, when there was a drop in applications because of tuition fees.
record level of investment in 2015? Student numbers When the coalition government raised the university tuition fee to an annual maximum of £9,000 starting in 2012, there was a drop in the number of students
2016 UK Student Accommodation Investment Guide
supply and a strong rate of growth in terms of prices. The trends of 2014 were somewhat repeated in
happen in 2016, according to experts.
UK PROPERTY IN 2015 House price rises As we come through the prices are threatening to that we’ve not seen in the last few years. Predictions for a number of years had been for continued growth through the rest of this decade, but no one quite predicted the 9.7 per cent house price growth that Halifax has been reporting in the last few weeks. It has with growth in terms of house prices.
2016 UK Student Accommodation Investment Guide
Supply and demand The supply and demand issue, a longstanding problem for the British property sector, has continued to cause consternation this year, but 2015 has emerged as the year the government has elected to do something about this. At his Autumn Statement and Spending Review announcement, chancellor George Osborne committed to more than 400,000 new homes being built across the UK in the next few years, which should be a
2016
hold for student property investment? After such a fantastic 2015, will 2016 live up to the standards that have been set for student property investment?
READ MORE
CALL NOW +44 (0) 207 834 1113
What will
start in terms of redressing the balance.
13
17
How UK Universities are Helping to Improve Demand for Student Property... Pages 16-17
sign of slowing down as of yet, with appetite from investors having been fuelled by a number of positive factors that exist in the UK’s university sector. First of all, demand from students is likely to continue to be high in 2016. In each year since the dramatic drop that followed the increase in tuition fees, UCAS has returned an impressive level of growth in terms of applicant numbers. We won’t know until mid-January, when the same, but it is likely to be if the early
this year alone, more than double what it’s ever been before. Savills expects that UK student property investment will top some £5.7 billion for 2015 as a whole, which is very impressive. But what will the future of the market hold? Will we see investment continue in line with this trend through 2016? Certainly the market has shown no real
2016 UK Student Accommodation Investment Guide
What will 2016 Hold for Student Property Investment? Pages 18-19
deadline saw more than 56,000 people apply for places in 2016’s academic year, a rise of about one per cent year on year. Another increase in applications will give for properties will remain high, which will only boost the appetite for investment.
READ MORE
CALL NOW +44 (0) 207 834 1113
5.7N
£BILLIO
Student property investment in the UK looks as if it will hit an all-new record high by the end of the year, according to one property company. By the end of December, JLL said, student investment should be sitting at around £5.7 billion for the year, more than double
19
the same time of year for the last three years combined.
GVA, said the exceptional year has
what we have witnessed in previous years.
factors, chief among which has been the availability of property portfolios and the
At the most recent check for the end of quarter three of the year, a report from
emergence of new developments, both of which have allowed large amounts of money to be invested in shorter periods of time. He also went on to say that at the moment, while student property is not seen as a mainstream asset class, it is getting closer than ever to this becoming a reality, with more money available in student property than other smaller asset
strong years recently.
classes.
has hit a record high this year. Student property investment looks set to top £5.7 billion by the end of 2015, according to JLL.
the market move into the mainstream at a very impressive rate. In 2012, the market hit £2 billion of
STUDENT PROPERTY INVESTMENT HITS RECORD HIGH
The level of investment in UK student property
Student property investors used to be the niche buyers in the UK’s property market, but ever since 2012, when student numbers started to grow in the post
matched this in both 2013 and 2014. And this year, the demand from students for quality accommodation has again increased the level of spending, with £4.25
9
CALL NOW +44 (0) 207 834 1113
GVA said that around £4.3 billion had already been invested in the sector in just nine months. This alone is far in excess of what we have seen in
READ MORE
CALL NOW +44 (0) 207 834 1113
2016 UK Student Accommodation Investment Guide
What is Student Property Investment? Pages 8-9
What will 2016 Bring for UK Property? Pages 12-13
for quality accommodation, which serves to push the student property market
Demand for student properties is assisted by real
In 2015, we’ve seen a property market that has once again been constrained by a lack of
Here, we take a look at a few of the most important
After a year of fast house prices and a focus on building new homes, what will see in 2016?
Breaking News Pages 10-11
HOW UK UNIVERSITIES ARE HELPING TO IMPROVE DEMAND FOR STUDENT PROPERTY
7
CALL NOW +44 (0) 207 834 1113
Tell Us What You Think... Pages 6-7
Welcome Pages 4-5
Breaking
2016 UK Student Accommodation Investment Guide
investment, which has seen an additional 40,000 student beds added to the market
2016 UK Student Accommodation Investment Guide
READ MORE
CALL NOW +44 (0) 207 834 1113
15
Student Property Investment Hits Record High Pages 14-15 the reward usually means the higher the risk of the investment, this is not always the case if you research the opportunity properly.
The Risks & Rewards of investing in UK student accommodation Understanding the risks and rewards profile of an investment is fundamental
to any successful investment strategy. Whilst it is generally assumed that the higher
2016 UK Student Accommodation Investment Guide
It is important that you know all the information about any investment you are considering and evaluate the risks and rewards.
Student accommodation investment Business model
Snapshot of the business model
CALL NOW +44 (0) 207 834 1113
21
The Risks & Rewards Pages 20-25
2016 UK 2016 Student UK Student Accommodation Accommodatio Inves
tips for student property investment
Location
F CUS
Where to invest?
There has been much talk within the investment property
reasons why student property is here to stay
Location Demand
investing in student property,
After conducting our own research within the guidelines
WATCH VIDEO
of our strict due diligence process, we have selected a number of key locations across the country which we
Jerald Solis, Experience Invest’s
2016 UK Student Accommodation Investment Guide
CALL NOW +44 (0) 207 834 1113
27
Management Company
Head of Business Development, has compiled his top 5 tips for to help guide investors to a successful investment.
consider good spots for student property investment.
Investor Security
2016 UK Student Accommodation Investment Guide
CALL NOW +44 (0) 207 834 1113
29
Why
Client testimonials
Who is responsible for repairs & maintenance? How are my funds protected during the construction period?
Can I raise a mortgage on a student property?
Passive income assured for a predetermined duration High occupancy rates of 99% (CBRE) UK’s top performing asset class since 2011 (Knight Frank) Fully managed by an experienced Management Company
WATCH OF A TYPICAL STUDENT VIDEO PROPERTY INVESTMENT
Aren’t student numbers declining?
Don’t universities have their own accommodation?
2016 UK Student Accommodation Investment Guide
CALL NOW +44 (0) 207 834 1113
33
2016 UK Student Accommodation Investment Guide
FAQs Pages 34-35
Why Invest in Student Property? Pages 32-33
CALL NOW +44 (0) 207 834 1113
Need to free up residential properties
CALL NOW +44 (0) 207 834 1113
31
“The Company is very professional, the team is very knowledgeable, and help diligently all the way through. The chosen properties in Liverpool and Luton are very attractive locations, with close proximity to university and hospitals. I shall consider to make further investments with the company. Also refer highly to family and friends,” Abishek Gupta, UK.
“My consultant was both helpful and willing to explain the process as well as consult if the topic was beyond their brief,” John Horn, UK.
CLICK
Higher yield per annum than traditional buy-to-let Low entry level - Invest from £49,950
Exclusive UK opportunities only available through Experience Invest
Substandard HMOs
2016 UK Student Accommodation Investment Guide
My Experience
How can I exit the investment?
invest in student property?
Higher than average yields
5 Reasons Why Student Property is Here to Stay Pages 30-31
5 Top Tips for Student Property Investment Pages 28-29
Location Focus Pages 26-27
Rising student numbers
Over the past 5 years, student property has emerged as a key component in an income generating investment portfolio. We’ve rounded-up our top 5 reasons as to why student property investment is here to stay.
Yield
If you are thinking about
community about the best locations in the UK to invest.
UK is home to top universities
TO WATCH VIDEO TESTIMONIAL
35
“Very satisfied with the knowledge of the consultant and also the professional approach of Experience International on the after sale service like update on the progress of the project,” Mr Teh, UAE.
2016 UK Student Accommodation Investment Guide
CALL NOW +44 (0) 207 834 1113
37
Client Testimonials Pages 36-37
Next steps
To discuss your requirements with one of our property consultants or to request further information on any of the following:
• Property details • Payment Process • Availability • Reserving a Unit • Booking a meeting
Please call us on: +44 (0) 207 834 1113 info@experienceinvest.com www.experienceinvest.com
2016 UK Student Accommodation Investment Guide
CALL NOW +44 (0) 207 834 1113
39
Next Steps Pages 38-39
(0) 207 NOW 834+44 1113(0) 207 834 3 1113 stment Guide GuideCALL NOW +44CALL
3
Welcome
2016 UK2016 Student UK Student Accommodation Accommodatio Inves
Welcome to Experience Invest’s Q1 2016 Student Accommodation Investment Guide. In its third year, the guide has been produced to deliver breaking news and expert information about the UK’s student property market. With over 50,000 unique views, the 2015 guide proved to be a popular source of information for investors looking to invest in the UK’s no.1 asset class. As the guide is online, it is regularly updated throughout the year to ensure that investors are kept up-to-date.
What our investors think... Last year we asked our readers, ‘What aspect of student property investment is most important to you?’
VIEW RESULTS
CALL NOW +44 CALL (0) 207 NOW 834 1113 +44 (0) 207 83451113 Guide stment Guide
5
Tell us what you think...
2016 UK 2016 Student UK Student Accommodation Accommodatio Inves
Select aspect to cast your vote and view results.
What aspect of student property investment is most important to you? Assured income in years Capital growth Interest paid on deposited funds Payment plans Location
Do you have a location in mind? Yes No Skip to Location Guide
How much money do you wish to invest? Below £50,000 £50,000 - £65,000 £65,000 and over
(0) 207 NOW 834+603 +44 1113 (0) 2162 2072260 834 1113 7 stment Guide GuideCALL NOW +44CALL
7
WhatWhat is is student student property propert investment? investment? How does the investment work?
2016 UK 2016 Student UK Accommodation Student Accommodat Inves
Benefits of student property investment: Established market Fully managed Assured returns Increase in annual rental income Can I sell my unit at any time?
CALL NOW +44 (0)CALL 207 834 NOW 1113 +603 2162 2260 9 Guide stment Guide
9
Breaking
Q1 2016
NEWS Mainstream asset class
READ MORE
Student numbers to rise by 50% READ MORE
2016 UK Student Accommodation Inves
Demand outstrips supply READ MORE
stment Guide
Uni rankings make the UK a ‘stand out performer’ READ MORE
CALL NOW +603 2162 2260
11
WHAT WILL 2016 BRING FOR UK PR PERTY?
After a year of fast house prices and a focus on building new homes, what will we see in 2016?
2016 UK 2016 Student UK Student Accommodation Accommodatio Inves
In 2015, we’ve seen a property market that has once again been constrained by a lack of supply and a strong rate of growth in terms of prices. The trends of 2014 were somewhat repeated in 2015, and looking forward to 2016, many expect to see very little in the way of fundamental changes, but with a more subdued performance. Here, we take a look at a few of the most important market in 2015, and examine what might happen in 2016, according to experts.
UK PROPERTY IN 2015 House price rises As we come through the prices are threatening to that we’ve not seen in the last few years. Predictions for a number of years had been for continued growth through the rest of this decade, but no one quite predicted the 9.7 per cent house price growth that Halifax has been reporting in the last few weeks. It has with growth in terms of house prices.
Supply and demand The supply and demand issue, a longstanding problem for the British property sector, has continued to cause consternation this year, but 2015 has emerged as the year the government has elected to do something about this. At his Autumn Statement and Spending Review announcement, chancellor George Osborne committed to more than 400,000 new homes being built across the UK in the next few years, which should be a start in terms of redressing the balance.
READ MORE
(0) 207 NOW 834+603 +44 1113(0) 2162 2072260 83413 1113 stment Guide GuideCALL NOW +44CALL
13
STUDENT PROPERTY INVESTMENT HITS RECORD HIGH
7N . 5 £ LLIO BI
The level of investment in UK student property has hit a record high this year. Student property investment looks set to top £5.7 billion by the end of 2015, according to JLL.
2016 UK2016 Student UK Student Accommodation Accommodatio Inves
Student property investment in the UK looks as if it will hit an all-new record high by the end of the year, according to one property company. By the end of December, JLL said, student investment should be sitting at around ÂŁ5.7 billion for the year, more than double what we have witnessed in previous years. At the most recent check for the end of quarter three of the year, a report from GVA said that around ÂŁ4.3 billion had already been invested in the sector in just nine months. This alone is far in excess of what we have seen in strong years recently.
investment, which has seen an additional 40,000 student beds added to the market
the same time of year for the last three years combined.
GVA, said the exceptional year has factors, chief among which has been the availability of property portfolios and the emergence of new developments, both of which have allowed large amounts of money to be invested in shorter periods of time. He also went on to say that at the moment, while student property is not seen as a mainstream asset class, it is getting closer than ever to this becoming a reality, with more money available in student property than other smaller asset classes.
READ MORE
CALL NOW +44 CALL (0) 207 NOW 834 1113 +44 (0) +603 2162 2072260 834 151113 Guide stment Guide
15
HOW UK UNIVERSITIES ARE HELPING TO IMPROVE DEMAND FOR STUDENT PROPERTY
Demand for student properties is assisted by real strength in the university sector in general. Quality and popularity of universities across the UK is driving demand for student homes.
2016 UK 2016 Student UK Student Accommodation Accommodatio Inves
The student property market has seen a real rise in the last few years, both in terms of demand from students and the levels of investment from people who see it as a viable way to make strong returns. But this market can only succeed on the strength of the university market that feeds it. Strong universities across the UK means higher student numbers, and this drips down into demand from students for quality accommodation, which serves to push the student property market forward. So what are the positives from the university sector that are giving student property a boost and pushing it to a record level of investment in 2015? Student numbers When the coalition government raised the university tuition fee to an annual maximum of ÂŁ9,000 starting in 2012, there was a drop in the number of students
applying for courses initially. It was feared that this would be the norm for the market, with the higher cost of studying
However, the education sector has bounced back spectacularly, and the number of applicants now grows year on year according to UCAS, and has done so ever since it saw that one dip in 2012. For the 2015 to 2016 academic year, UCAS said the number of applications was higher than ever before, with 511,730 of these being accepted. This marked a three per cent increase year on year when compared to 2014, as well as a seven per cent rise compared to 2013, and a 16 per cent increase on 2012, when there was a drop in applications because of tuition fees.
READ MORE
(0) 207 NOW 834+603 +44 1113 (0) 2162 2072260 83417 1113 stment Guide GuideCALL NOW +44CALL
17
What will
2016
hold for student property investment? After such a fantastic 2015, will 2016 live up to the standards that have been set for student property investment?
2016 UK 2016 Student UK Accommodation Student Accommodat Inves
Student property investors used to be the niche buyers in the UK’s property market, but ever since 2012, when student numbers started to grow in the post
sign of slowing down as of yet, with appetite from investors having been fuelled by a number of positive factors that exist in the UK’s university sector.
the market move into the mainstream at a very impressive rate.
First of all, demand from students is likely to continue to be high in 2016. In each year since the dramatic drop that followed the increase in tuition fees, UCAS has returned an impressive level of growth in terms of applicant numbers.
In 2012, the market hit £2 billion of matched this in both 2013 and 2014. And this year, the demand from students for quality accommodation has again increased the level of spending, with £4.25
We won’t know until mid-January, when the same, but it is likely to be if the early
this year alone, more than double what it’s ever been before. Savills expects that UK student property investment will top some £5.7 billion for 2015 as a whole, which is very impressive. But what will the future of the market hold? Will we see investment continue in line with this trend through 2016? Certainly the market has shown no real
deadline saw more than 56,000 people apply for places in 2016’s academic year, a rise of about one per cent year on year. Another increase in applications will give for properties will remain high, which will only boost the appetite for investment.
READ MORE
CALL NOW +44 (0)CALL 207 834 NOW 1113 +44 (0) +603 2162 2072260 834 1113 19 Guide stment Guide
19
The Risks & Rewards of investing in UK student accommodation Understanding the risks and rewards profile of an investment is fundamental
to any successful investment strategy. Whilst it is generally assumed that the higher
2016 UK Student Accommodation Inves
the reward usually means the higher the risk of the investment, this is not always the case if you research the opportunity properly.
stment Guide
It is important that you know all the information about any investment you are considering and evaluate the risks and rewards.
Student accommodation investment Business model
Snapshot of the business model
CALL NOW +603 2162 2260
21
Let’s look at some of the risk and rewards you need to consider before investment in any student accommodation project.
RISKS
2016 UK 2016 Student UK Student Accommodation Accommodatio Inves
THE DEVELOPMENT COMPANY COULD GO INTO LIQUIDATION THE BUILD AND MANAGEMENT COSTS COULD HAVE BEEN CALCULATED WRONG OR INACCURATELY THE PROJECT COULD TAKE LONGER TO BUILD AND COMPLETE THAN EXPECTED THE LOCATION MIGHT NOT BE THE BEST COMPETITION FROM THE LOCAL MARKET STUDENT NUMBERS COULD DECLINE ALONG WITH DEMAND RENTAL INCOME COULD DROP AFTER THE ASSURED TIME PERIODS THE MANAGEMENT COMPANY COULD GO INTO LIQUIDATION OR PROVIDE A POOR SERVICE
(0) 207 NOW 834+603 +44 1113(0) 2162 2072260 83423 1113 stment Guide GuideCALL NOW +44CALL
23
REWA REW Proven business model No.1 asset class Higher yields Invested funds security Assured income
Capital growth potential as property prices in the UK market are on the rise and anticipated to continue to do so for the foreseeable future
Security of UK property market with Sustainable market, strong clear and growing with high demand transparent property Strong market conditions ownership laws Low entry level
2016 UK2016 Student UK Student Accommodation Accommodatio Inves
ARDS ARDS READ MORE
CALL NOW +44 CALL (0) 207 NOW 834 1113 +44 (0) +603 2162 2072260 834 251113 Guide stment Guide
25
Location
F CUS
Where to invest?
There has been much talk within the investment property community about the best locations in the UK to invest. After conducting our own research within the guidelines of our strict due diligence process, we have selected a number of key locations across the country which we consider good spots for student property investment.
2016 UK 2016 Student UK Student Accommodation Accommodatio Inves
(0) 207 NOW 834+603 +44 1113 (0) 2162 2072260 83427 1113 stment Guide GuideCALL NOW +44CALL
27
tips for student property investment WATCH JERLAD’S INTERVIEW WITH THE TELEGRAPH If you are thinking about investing in student property, Jerald Solis, Experience Invest’s Head of Business Development, has compiled his top 5 tips for to help guide investors to a successful investment.
2016 UK 2016 Student UK Accommodation Student Accommodat Inves
Location Demand Yield Management Company Investor Security
CALL NOW +44 (0)CALL 207 834 NOW 1113 +603 2162 2260 29 Guide stment Guide
29
reasons why student property is here to stay Over the past 5 years, student property has emerged as a key component in an income generating investment portfolio. We’ve rounded-up our top 5 reasons as to why student property investment is here to stay.
2016 UK Student Accommodation Inves
UK is home to top universities
Rising student numbers
Higher than average yields
Substandard HMOs
Need to free up residential properties
stment Guide
CALL NOW +603 +44 (0) 2162 2072260 834 1113
31
Why invest in student property? Higher yield per annum than traditional buy-to-let Low entry level - Invest from £49,950 Passive income assured for a predetermined duration High occupancy rates of 99% (CBRE) UK’s top performing asset class since 2011 (Knight Frank) Fully managed by an experienced Management Company Exclusive UK opportunities only available through Experience Invest
2016 UK 2016 Student UK Student Accommodation Accommodatio Inves
WATCH OF A TYPICAL STUDENT VIDEO PROPERTY INVESTMENT
(0) 207 NOW 834+603 +44 1113(0) 2162 2072260 83433 1113 stment Guide GuideCALL NOW +44CALL
33
How are my funds protected during the construction period? Aren’t student numbers declining?
2016 UK2016 Student UK Student Accommodation Accommodatio Inves
How can I exit the investment? Who is responsible for repairs & maintenance? Can I raise a mortgage on a student property? Don’t universities have their own accommodation?
CALL NOW +44 CALL (0) 207 NOW 834 1113 +44 (0) +603 2162 2072260 834 351113 Guide stment Guide
35
My Experience Client testimonials
CLICK
TO WATCH VIDEO TESTIMONIAL
2016 UK 2016 Student UK Student Accommodation Accommodatio Inves
“The Company is very professional, the team is very knowledgeable, and help diligently all the way through. The chosen properties in Liverpool and Luton are very attractive locations, with close proximity to university and hospitals. I shall consider to make further investments with the company. Also refer highly to family and friends,” Abishek Gupta, UK.
“My consultant was both helpful and willing to explain the process as well as consult if the topic was beyond their brief,” John Horn, UK.
“Very satisfied with the knowledge of the consultant and also the professional approach of Experience Invest on the after sale service like update on the progress of the project,” Mr Teh, UAE.
(0) 207 NOW 834+603 +44 1113 (0) 2162 2072260 83437 1113 stment Guide GuideCALL NOW +44CALL
37
Next steps
To discuss your requirements with one of our property consultants or to request further information on any of the following:
• Property details • Payment Process • Availability • Reserving a Unit • Booking a meeting
2016 UK 2016 Student UK Accommodation Student Accommodat Inves
Please call us on:
+603 2162 2260 info@csiprop.com www.csiprop.com
CALL NOW +44 (0)CALL 207 834 NOW 1113 +44 (0) +603 2162 2072260 834 1113 39 Guide stment Guide
39
UK Student Accommodation Investment Guide
CALL US ON
+603 2162 2260
CORNERSTONE INTERNATIONAL PROPERTIES
DISCLAIMER EMAIL:
info@ csiprop. com
VISIT
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2016 UK Student Accommodation Inves