Property investors from as far away as Hong Kong are measuring up homes for sale in leading university cities in a global stampede to cash in on profits from letting to students.
One leading Far East newspaper, the South China Morning Post, is urging investors to look to Glasgow as homeowners are struggling to sell even in a market that has slipped back to 2003 prices.
The average home on Glasgow costs a shade under £160,000, according to the latest data from the Registers of Scotland, which tracks official house price statistics.
While Glasgow attracts more than 50,000 students a year, the combined bed space of all universities and colleges houses just 6,500 students, while private halls of residence offer around 4,200 more.
Property consultants Jones LaSalle reckon this supplies accommodation to 8.3% of the city’s student population and represent a golden opportunity for private investors to buy large family homes and disused commercial buildings for conversion in to shared student houses.
Meanwhile rival consultancy Savills has revealed research which suggests high-level policy decisions and government cuts will leave leading British universities woefully short of student halls.
"Scotland has a real ongoing supply/demand imbalance. Edinburgh and Glasgow universities are still hitting the top 10 for investors in British student accommodation, and Aberdeen remains a popular choice, albeit narrower in its appeal because of its specialisations," said a Savills’ spokesman.
Figures suggest private student landlords offering quality accommodation as houses in multiple occupation (HMO) have the chance to soak up the overflow from further education establishments – and that this opportunity will only expand over coming years as demand from home and overseas becomes more acute.
Private student landlords will find resistance is some areas where councils are imposing additional licensing or article 4 directions to restrict the number of HMOs – however, only 50 or so councils are looking at controlling HMOS through tougher planning or licensing out of the hundreds throughout the country.
The message is clear for would-be student landlords – look for property in university cities before councils impose HMO restrictions.
