Jump to content
House Price Crash Forum
or in excess of

More Student Accommodation Being Built

Recommended Posts

Its happening all over the country, here is a new one in Hammersmith London.

http://construction.morgansindall.co.uk/news?actv_ms_news_latest_news_id=337&actv_ms_news_latest_news_page=3

418 students taken out of the buy to let landlords pockets. :)

Share this post


Link to post
Share on other sites

Its happening all over the country, here is a new one in Hammersmith London.

http://construction.morgansindall.co.uk/news?actv_ms_news_latest_news_id=337&actv_ms_news_latest_news_page=3

418 students taken out of the buy to let landlords pockets. :)

Hardly ... Its a case of follow the money.. Tuition fees up, debt up,, more debt slaves for the rentiers

Share this post


Link to post
Share on other sites

Excellent news. All unis should do that. It would release lots of houses for local families.

A lot universities are losing haemorrhaging money with this ridiculous tuition hike. What happened to the UK's competitive 'knowledge' economy?

Short term policy for long term financial ruin. I would expect to see a lot of the poly's and newbuild schools looking to merge or shut in the coming decade.

And at the end of it, young folk these days are generally not seeing any future via a degree/cert outwith established vocational studies.

Universities set to lose £5.6bn as overseas applications plummet

Final thought, land lording in the UK is an area of income earing best left to either the government or fair minded cash buying types. Raising your income by 'cheating' the system, via buy-to-let is a temporary measure and will end in tears for most.

Share this post


Link to post
Share on other sites

A lot universities are losing haemorrhaging money with this ridiculous tuition hike. What happened to the UK's competitive 'knowledge' economy?

Short term policy for long term financial ruin. I would expect to see a lot of the poly's and newbuild schools looking to merge or shut in the coming decade.

And at the end of it, young folk these days are generally not seeing any future via a degree/cert outwith established vocational studies.

Universities set to lose £5.6bn as overseas applications plummet

Final thought, land lording in the UK is an area of income earing best left to either the government or fair minded cash buying types. Raising your income by 'cheating' the system, via buy-to-let is a temporary measure and will end in tears for most.

I was talking about the student accommodations issue. £30million to build 900 student rooms means each room will cost only £30k. IMO rents will surely cover that.

And removing 900 students from Plymouth rental sector will surely release many houses for local families, lowering local rents.

I think it's a very good policy. It increases the housing supply.

.

Edited by Tired of Waiting

Share this post


Link to post
Share on other sites

It makes sense for universities to capture as much of the money in the system as possible. It will probably increase pass rates too.

Exactly. Actually the main gain is probably the initial planning gain.

Share this post


Link to post
Share on other sites

Looked at a small student flat development in Lockwood, Huddersfield under construction yesterday. The advert/bill board were really showing off the "student lifestyle" with iPads scattered around very trendy rooms...and a view of London! blink.gif

Share this post


Link to post
Share on other sites

This is happening on a big scale in Cardiff.

There are a large amount of "to let" signs to be seen in the older student type properties around Cardiff student areas, so it must already be having an effect on many LL's in the city.

Extract below from an interesting blog from September, written by an ex Cardiff student who worked for some time as an estate agent.

http://simonreah.wordpress.com/2012/09/13/student-housing-in-cardiff/

Student housing in Cardiff

.....This week I heard on twitter that Cardiff Council has been busy giving planning permission to developers.

...After reading a few local websites I was surprised at the size of these new student flats and the impact on my city. Firstly, 279 bedrooms on Oxford Street, Roath. Then the refurbishment of Shand House on Newport Road which will hold 198 student bedrooms. Earlier this year Plans for 179 student apartments in Gabalfa were approved by the Welsh Government, despite being thrown out by city councillors last year.

It comes after a 348-bed tower was recently approved at Mynachdy, plans for a 86 bedroom, six storey student development at St Andrews Lane and a bid for a 250-bed scheme on City Road awaits consent.

Sites already built and ready for this years students include a development on Salisbury Road, Cathays and a 189-bed development on Adam Street, Adamsdown.

Recently, planning was declined for a 79-bedroom student accommodation with 200 square metres of retail space, at 23-24 Park Place.

A student boom over the last twenty years has now seen 75% of the housing in Roath, Cathays and Plasnewydd now rented rather than owned with over 8,000 purpose-built student bed spaces in Cardiff.

Many investors have made large amounts of money because of the students. I’ve seen first hand the large numbers of properties investors purchase. I’ve known landlords who own over one hundred properties, bars, clubs and take aways in the city centre. They mainly look for properties in the ‘Cathays triangle’ and will happily make a bid within 24hrs of the property going on the market. These landlords are so big that having a few empty properties doesn’t matter if your other 98 are rented.

Then at the other end of the scale you have the small investors. These are the people that will be hardest hit by the increased student accommodation in Cardiff. With students having more choice it’s only natural that modern quality flats are taken first.

I still know people in estate agency who say there are hundreds of empty properties. Its September, the academic year is nearly upon us, if your house isn’t rented now then the chances will drop dramatically. Many of these empty houses are now slightly dated, the kitchens and bathrooms not quite so modern. A few stains on the carpet, maybe a wire showing here and there. Without thousands of pounds to refurbish them the landlords are seeing students move into newly built student accommodation or the refurbished rental houses. Of course you still have some students living in run down houses but the majority of students want modern living. Some landlords are throwing in brand new ikea sofas and large flat screen TVs to attract students. It works but only if you have the money to do this.

Cardiff is a fairly small city but with a high proportion of students it’s only natural the council and investors try to accommodate them. What happens to all these older empty properties though? If they are owned by larger landlords they will either be refurbished, rented on the cheap, incentives thrown in or maybe sold. It’s the smaller landlords that will be forced to sell. The best of these empty houses are more than likely to be purchased by investors. I would like to think its an opportunity for first time buyers to get on the property ladder. Some houses and flats that don’t rent or are snapped up by investors could be seen on the market. We all know of the struggles first time buyers have so maybe we will see more of the empty rental houses in Roath and Cathays for sale. Maybe the increased purpose built student accommodation will actually bring more residents into the heart of Cardiff? It’s not exactly ‘win-win’ but it’s a chance for the first time buyers to reclaim the streets."

Share this post


Link to post
Share on other sites

Looked at a small student flat development in Lockwood, Huddersfield under construction yesterday. The advert/bill board were really showing off the "student lifestyle" with iPads scattered around very trendy rooms...and a view of London! blink.gif

Last weekend, I also saw something similar outside a large development being constructed in Cardiff.

Share this post


Link to post
Share on other sites

Student housing itself is in a bit of a bubble, it has been identified as a separate asset class in its own right & has attracted alot of private equity investors into the market via offshore cos to develop these schemes.

Share this post


Link to post
Share on other sites

This is happening on a big scale in Cardiff.

There are a large amount of "to let" signs to be seen in the older student type properties around Cardiff student areas, so it must already be having an effect on many LL's in the city.

Extract below from an interesting blog from September, written by an ex Cardiff student who worked for some time as an estate agent.

http://simonreah.wordpress.com/2012/09/13/student-housing-in-cardiff/

Excellent.

The majority of these developments don’t provide parking. Many students now have cars (...)

That's stupid.

Share this post


Link to post
Share on other sites

I suspect a lot of it is because of the predominance of international students at universities. While the appeal of living a young ones lifestyle in a shabby victorian terrace might chime with UK students, it probably doesnt attract many non-UK students, who with the increase in local tuition fees, will surely make up more and more of the student body.

I think those who got in on buying houses and renting to students early on (mid 90s or before) will be OK. From my own observations they tended to be the nicer, more established student areas. As the boom got underway in the 2000s, investors (many of whom were parents of kids at university, often from other ends of the country and not knowing the local area) would buy on price alone, believing all the up-and-coming, locationx3 rhethoric. From my own experience, some of the areas neighbouring the established student areas are pretty grotty (to say the least) in many big university cities.

Share this post


Link to post
Share on other sites
That's stupid.

Actually it's not. Most students don't have cars. Students with wealthy parents have cars. Students with wealthy parents wont need cheap accommodation. Most students can't afford them. £2000 a year for insurance?

There is a good reason halls of residence don't have parking spaces - IT TAKES UP TOO MUCH ROOM.

Halls of residence are usually near the university, in the city center. It would be ridiculous to set aside tens of millions of pounds worth of land for parking. The majority of students in halls don't need parking. They are in the halls so that they are walking distance from the uni and the other related services they need.

Share this post


Link to post
Share on other sites

Actually it's not. Most students don't have cars. Students with wealthy parents have cars. (...)

I think this is no longer true. I don't know if more than 50% of students have cars, but it's possible. We would need data here. But many students do.

The full quote above:

I am not sure local residents would be so positive. The majority of these developments don’t provide parking. Many students now have cars which means local residents face a battle for parking.

http://simonreah.wordpress.com/2012/09/13/student-housing-in-cardiff/

Students with wealthy parents wont need cheap accommodation. Most students can't afford them. £2000 a year for insurance?

There is a good reason halls of residence don't have parking spaces - IT TAKES UP TOO MUCH ROOM.

Halls of residence are usually near the university, in the city center. It would be ridiculous to set aside tens of millions of pounds worth of land for parking. The majority of students in halls don't need parking. They are in the halls so that they are walking distance from the uni and the other related services they need.

Of course. I was thinking about parkings in these buildings' undergrounds, like in most modern city buildings.

Edited by Tired of Waiting

Share this post


Link to post
Share on other sites

Student housing itself is in a bit of a bubble, it has been identified as a separate asset class in its own right & has attracted alot of private equity investors into the market via offshore cos to develop these schemes.

Really? Could you name some of them?

Genuine question: with a name or two one could check up the motivation for the structure you describe, which should help tell whether it's new players (suggesting a possible bubble brewing) or just established ones reorganising themselves in response to some change in the regulatory and tax framework.

Share this post


Link to post
Share on other sites

Really? Could you name some of them?

Genuine question: with a name or two one could check up the motivation for the structure you describe, which should help tell whether it's new players (suggesting a possible bubble brewing) or just established ones reorganising themselves in response to some change in the regulatory and tax framework.

http://www.ft.com/cms/s/0/8c28a348-2691-11e2-9295-00144feabdc0.html#axzz2PbGaS9kP (should be able to read article via google:'student housing private equity')

Following are PE firms involved:Blackstone owned Nido Student Living & sold to Round Hill Capital, Carlyle Group own Pure Student Living, Oaktree Capital, Applecrest and few others; many invest via Luxembourg and other offshore structures.

Also this blog article is interesting talking about these themes:

http://partitaimaginaria.tumblr.com/post/36805668285/the-imaginary-party-housing-speculation-student-debt

Edited by UnsureFTB

Share this post


Link to post
Share on other sites

I don't know if more than 50% of students have cars, but it's possible.

Hmm. Maybe in select cities? Sounds too high. I would say that 1-in-10 or even 1-in-20 students have a car.

Uni is a lot more expensive than most people nowadays understand, unless you've got yourself or your kids in one right now.

Share this post


Link to post
Share on other sites

Hmm. Maybe in select cities? Sounds too high. I would say that 1-in-10 or even 1-in-20 students have a car.

Uni is a lot more expensive than most people nowadays understand, unless you've got yourself or your kids in one right now.

When my kids were in university halls (only their first years) there was no provision for student parking unless you had a special need, i.e. were physically disabled. This was at Nottingham and Newcastle.

Don't suppose it's changed much.

Share this post


Link to post
Share on other sites

Looked at a small student flat development in Lockwood, Huddersfield under construction yesterday. The advert/bill board were really showing off the "student lifestyle" with iPads scattered around very trendy rooms...and a view of London! blink.gif

That's not the student lifestyle! In my day it was a leaky kitchen, mould, and a bog that didn't work! :huh:

Share this post


Link to post
Share on other sites
I am not sure local residents would be so positive. The majority of these developments don’t provide parking. Many students now have cars which means local residents face a battle for parking.

The "there's no-where for them to park" excuse is just more nimby BS I'm afraid.

People in their 50s and 60s don't want 300 students living in halls near their house. Young people, you know, they're all criminals.

Share this post


Link to post
Share on other sites

The "there's no-where for them to park" excuse is just more nimby BS I'm afraid.

People in their 50s and 60s don't want 300 students living in halls near their house. Young people, you know, they're all criminals.

I agree with that. Still, remove their argument by building 1 or 2 levels of underground parking. Do some research, find out what share of students usually have cars, and plan for it.

By the way, we forgot to consider location: very few London students will have cars, of course, but in smaller towns and cities many do - cheap old bangers, naturally, but they do.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 243 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.