Student rents in traditional HMOs are up to 75% less than rents in purpose-built accommodation, says Knight Frank.
In its annual report on the UK student accommodation sector, it says that the rent for purpose-built student accommodation, such as private halls of residence, is 75% higher than for HMOs in Oxford and Newcastle, and 56% higher in London.
The firm is predicting rental growth of 3% in London and 2.75% in the regions next year.
Knight Frank also says that with a projected rise of 3% in the number of full-time students and an under-supplied market, overseas investors entering the sector include those from the US and Middle East.
There are currently over 13,000 student bedrooms planned or under construction in London.
James Pullan, Knight Frank head of student property, said: “Confidence in the sector is evident, and demonstrated in a simple way by the schemes currently taking shape around us.
“There has this year been a trend for increasingly tall developments, some as many as 35 storeys.”
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