The growth in university applications in London in recent years has led to a major shortfall in student accommodation, with significantly more new homes in the sector required, according to property consultant Drivers Jonas Deloitte.
Despite planning consent in place for a number of student housing-related projects in the capital, many of the schemes may find it hard to go-ahead due to problems in raising finance, among other hindrances.
Andrew Gale, planning director at Drivers Jonas Deloitte, said that more housebuilders need to focus on forming partnerships with universities to address the shortage of new homes, in a bid to increase the supply of student accommodation, particularly in Camden, Southwark and Hammersmith & Fulham.
With the gap between the volume of students and the supply of accommodation continuing to widen, there are lots of investment opportunities for property investors.
Recent research conducted by Paragon Mortgages found that student homes are generally among the highest yielding in the buy-to-let sector in this country. Landlords can expected to receive, on average, annual rental returns of yields of 6.45% nationwide, although this figure is considerably higher in some parts o the UK.