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Student Accomodation The Hot-spot PDF Print E-mail
Blog and News - Property Investment
Written by John Angeletta   
Thursday, 26 January 2012 10:40
In The Telegraph, Emily Gosden reported, financial institutions spent £2.2bn on residential properties in the last financial year, up from £765m in 2009/10 and at the highest level since before the credit crunch, according to City law firm Wedlake Bell.

Jeremy Raj, Head of the firm’s Residential Property Team, said there had been strong investment in the student accommodation market, both from UK and overseas institutions.

Mr Raj added: There has been a startling jump in purchases of UK residential property by institutional investors. Institutions are being attracted to residential property because of improving market fundamentals, including high tenant demand, high rents and a supply shortage that shows no immediate signs of abating.

He said that the market was still feeling the effect of the freeze in new builds during the credit crunch. The supply shortage has pushed up average rents to £720 a month.

Mr Raj said that financial institutions had previously been reluctant to invest in residential property due to the high costs of managing a residential portfolio.

Government action such as Stamp Duty tax breaks had also contributed to the newfound institutional appetite for such properties, he said.

Total purchases of residential property increased by 24%, from £346bn in 2009/10 to £429bn in 2010/11. 

Property companies increased their purchasing by 27% to £7.5bn, while purchases by individuals increased by 24% to £193.8bn, the firm said.

To explore getting hold of your purpose built under-grad' pods at BMV prices, call John on 0203 239 4359.

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