This year, London accommodation highlights the market of London student accommodation. It is expected to demonstrate rental growth as it constitutes a vital investment opportunity when properties in UK present challenges toward investors. This segment of property is opposing the trend. A major inequality is seen between the demand and supply on the private segment student accommodation. Of the 250,000 students in London’s full time higher education, approximately only 1.5% can access private segment accommodations that are commercially operating. Independent views also stated that around 50% to 75% of university accommodation stock is outdated by latest standards. There’s a pressing need to erect more and the moment is precise for universities and developers. The decreased land costs have generated an opportunity for operators, specialist developers and investors in the student accommodation division. Lands that were previously unworkable are now seen having better value.

In line with this, we can expect to see more premeditated joint schemes being structured between UK operatives and overseas investors that have existed traditionally. However, several barriers are potential actors to entry into the segment. The figure shows a rising number for students who are choosing to study in London, although it is not only a domestic trend for UK as universities in the capital are increasingly attracting students abroad. This segment of the property market could also serve as the means to draw foreign investment. The sustained reduction of the Sterling against Euro and US dollar has made United Kingdom more catching to foreign investors. The past have witnessed investors such as GIC to form combined ventures with the Unite Group in UK and seemingly other resembling partnerships in the segment are expected to be observed.

In the end, students can only hope that affordability of student housing and good design remain as two aspects that hardly seem to fit well together. Affordability has continued to entail accommodation that is characterized by the cheapness and affordability of the rent rather than a setting where people would prefer to live.