Landlord’s Broadening Their Wings: Find Opportunities In Student Housing

As per the latest student housing news, Landlords believe that student housing provides a better property investment in a span of one year, which is around 23%. The other property investments include housing developments, which is 21%, and luxury residential properties stand at 19%. 

Furthermore, if we look at the UK student accommodation data, commercial lending is expected to swell from £90bn in 2023 to £118bn in 2028. According to Chief Baguley, Group Channel Development Direct, Together, As we look at the UK commercial property landscape, the scope and diversity of the opportunities are impressive. Whether it is student housing, housing/residential development, or repurposing retail and other larger sites, the next few years are going to provide significant growth for the UK commercial property market.

“The optimism of the sector, combined with the economic recovery, mean those investors that are well poised with the right finance support will ultimately be in the best position to capitalise on these opportunities.”

Additionally, in the recent student accommodation news, it is observed that there was a lot of irregular motion around the property interest rate in 2023, which has eased a bit however, the debt and borrowing costs continue to rise. Adding to that, around a third of property developers, landlords, and investors have cited inflation (30%) and mortgage/interest rates (27%) as one of the biggest challenges for planning this year. 

According to Rob Thomas, economist and principal researcher at the Intermediary Mortgage Lenders Association (IMLA), “In the short term, while inflation is coming back under control, the higher interest rate environment will take some adjustment for commercial property businesses, landlords and developers– including de-risking portfolios and diversifying into new growth sectors.”

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