Liverpool student rents see highest growth in the UK

RENTAL growth in the student accommodation sector has seen the highest increase in Liverpool, rising by 13% over the last academic year, according to a student property report.

The growth rate, also matched by Bristol and Leeds, is well above the average growth rate of 5% a year that has been seen over the last five years, said the report by Knight Frank.

In Manchester regional rental growth in the last academic year was also well above average, with a 9% increase in student rents.

Rental growth in the student accommodation sector remains robust, compared to 0.6% growth seen for commercial property.

The report said the sector has remained resilient because student numbers – both domestic and overseas – continue to grow, as does the popularity of post graduate study, particularly when there are fewer jobs for graduates.

It added that indicators for 2010-11 show that student rents will continue to rise by 5%, in the ensuite market, while high-end studios, particularly those in London, will remain static without any falls.

David Porter, head of North West commercial at Knight Frank, said: “Manchester has real opportunity for the further development of purpose built student accommodation in the city centre.  The council’s recently sponsored study suggests that there is the potential to accommodate additional purpose built student accommodation in the city over the next five years.  

“Initial high level modelling suggests in the order of a 10% to 20% increase in hall bed spaces (between 1,810 and 3,620) could be accommodated. Moving students into the city centre is seen as a popular move to release pressure on the existing housing stock in areas that are currently occupied by students.”

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