Time to tidy I think..
Student Accommodation & Uni Fee Increases – What Is The Real Cost Of A Place To Live?
Many may speculate that the cost of Student Accommodation in Birmingham is anticipated to become a rise and fall in the coming months. However despite the looming course fee increases, the need for student accommodation in the UK was defined as ‘booming’ in 2011! The market was classified as the ‘best performing property investment sector’ in a document circulated by the multi-national letting agency Knight Frank (Published May 2011). They also write that the “total returns in 2010 for student accommodation in the regions outperformed all other property sector”. And there is more, James Pullan (Knight Frank’s representative of student property) is quoted saying “The student accommodation sector is now recognised as forming a crucial component of a balanced investment portfolio”.
In the Knight Frank Student Property document 2011; London, Brighton, Edinburgh and Oxford are ranked in the top 5 cities to invest in property in the UK. Student Accommodation in Birmingham is listed at place 19. In a more current report Knight Frank recorded that London student property returns doubled in 2011! This is said to be due to “Limited supply together with increasing global interest in the United Kingdoms educational excellence”. Which in tandem “points towards further strong rental growth in the sector”.
So, what are the effects on the cost of letting Student Accommodation Birmingham?
The University of Birmingham evaluate the price of living for a single student over a 42-week academic session is £283 per week or £11,866 for the whole period. For students who rent a room in a private shared address, this declines to £245 or £10,290 over the same period.
The actual cost of letting in either University owned, or private student accommodation ranges from around £110 to £190 a week. This number is significantly influenced by; deciding to live on the vale, the distance from University and whether you specifically want a room with an en-suite. For private shared houses the weekly rental figure declines to around £50 to £90. This value is subject to the; distance to the ‘student area’, distance to university and other amenities (E.g. Sainsbury’s), number of tenants sharing, size and finish quality of the accommodation, the provision of facilities (E.g. double beds), and whether bills are included (E.g Electric).
The RBS Student Finance survey placed Birmingham as the seventh most cost-effective student city, out of twenty seven locations in the UK. The survey took into account; the cost of renting student accommodation in Birmingham, food, shopping and more.
Whatever your position, if you are prepared to compensate on one or more variables above – it will vastly decrease the annual cost. For example, living close to University in a recently done up flat with a medium to large number of rooms will be noticeably more than a similar property an additional 1 mile walk.
Considering the tuition cost rise beginning in the next academic year (2012-2013), its plausible to speculate that the approximate rental ranges stated above are not likely to alter too much when considering the demand for further education in the UK and Student Accommodation in Birmingham.
This prediction is based on the fact that Knight Frank speculates “The winners from the new tuition fees structure will be the most prestigious universities amid a flight to quality as students hunt for the very best course available for their fees. The losers will be the least prestigious institutions offering commercially uneconomical degrees” (2012).
