Investors looking to add to their portfolios in 2023 should be urged to consider student housing opportunities, according to a Newcastle agency.
Seekers, formerly Walton Robinson, has reported seeing huge increases in demand and lower supply with many local, national and international students competing for homes, particularly larger stock and HMOs.
Agency buy to let chief Kyle Dickson says: “With the rise in demand for student housing, we’re finding that the current market in Newcastle is ripe for landlords looking to expand their portfolios.
“Because of the increase in the number of students coming to Newcastle, both international and domestic, we’re seeing an increased requirement for accommodation and a subsequent boost to rental yields.”
According to the Higher Education Policy Institute, participation in higher education has increased by nearly 25 per cent since 2006, with the younger population projected to increase by 23 per cent over the next decade.
Universities and colleges in the United Kingdom have also seen an increase in the number of student applications from Nigeria, China, and India this year, according to Universities and Colleges Admissions Service (UCAS).
Seekers investment director Richard Ponton adds: “There is a surplus of reasons why the current climate would serve as the right time for investors to consider student properties, with high levels of demand at the forefront.
“We believe the demand is sustainable as student numbers are forecast to rise, but the pipeline of bed spaces is not keeping pace with the growth.”