A growing student population in the UK means that investors are increasingly looking to invest in private student residential halls in greater numbers.
Over the past five years, investment in student accommodation in the UK has rocketed to £3.8 billion from less than £500 million.
Most of that money is heading to the capital, where the student population is expected to grow a staggering 50% by 2025.
These figures come from property firm JLL, who say that students from outside the European Union are the fastest-growing sector, having risen by 50% over the past 10 years and looking to grow further in the years to come.
Students from overseas support around 60,000 jobs in London, and boost the economy by £2.3 billion.
With growing demand for rented accommodation, increasing numbers of students are opting for houses of multiple occupation, also known as HMOs, where 20% of the capital's student population now live.
Growth in private residential halls for students
One reason for the growth in private residential halls for students is the failure of university-managed student accommodation to keep up with growing demand.
In addition, the growing supply of private halls are of higher quality than other forms of accommodation, which is also proving to be hugely popular with students wanting comfortable places to live.
In addition to an influx of overseas students, London’s student population has also been boosted by postgraduate students who are increasingly moving away from shared houses and looking for properly managed and maintained purpose-built blocks.
The chairman of JLL, Philip Hillman, said that student numbers have seen extraordinary growth in the past 20 years and these numbers have now stabilised - the number of international students, however, continues to rise dramatically.
Good quality student accommodation
Hillman added that “good quality student accommodation has been the responsibility, traditionally, of universities, but now it is provided by developers and private investors.”
We have highlighted previously on privatehalls.co.uk that students today who move into a private residential hall can expect a home-from-home experience in a high-quality environment.
Most of these purpose-built student accommodation blocks are located close to the university campus and offer either studio apartments or shared apartments to a growing number of students.
They also get to enjoy manned reception desks and round-the-clock security, as well as cafes, cinemas, and games rooms. One large private residential hall for students also has a 10 pin bowling alley!
This growth in student residential halls has been driven by parents and students not wanting to live in poor quality student accommodation but opting instead for high quality, comfortable, modern buildings. They can also live in the same flat for the duration of their studies, unlike university provided accommodation.
The rents for living in private student residential halls do vary depending on the facilities available and the location of the building, but they are all well maintained and managed by companies determined to offer an alternative to university residential halls.