In the December 2008 Issue of Property Investor News
Student Market North East
A recent survey produced by The Money Centre highlighted that the student housing sector is one market that is not being adversely affected by the global credit crunch. People still need to go to school and get an education, and a credit crunch is not going to change that. According to the survey, nearly 20% of residential landlords in the UK are looking to add to their portfolio, taking advantage of decreasing property prices which in turn can lead to higher yields.
The North East (NE) of England comprises of Newcastle, Sunderland, Durham and Middlesbrough and between them they house five different universities including the University of Sunderland, the University of Teesside, Durham University, Newcastle University and Northumbria University.
In total, there are 110,500 full-time students in the area. Around 27.9% of students live in purpose-built accommodation and out of this 23% live in commercial halls, 19.4% live with their parents and 52.7% live in houses of multiple occupation (HMOs).
The NE of England follows the national trend of university accommodation supply trailing behind increasing student numbers, therefore not meeting the demand. According to Savills Research, the ratio of the number of students per bed in purpose-built student accommodation (university and commercial halls) was 3.6 in 2006/07, meaning that theoretically, there are almost four students per bed.
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