Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

Is this a (partial )solution to the housing shortage?

Covering Market, Trends, and Practical (but see LEMON-AID for Building & DIY)
casapinos
Posts: 35
Joined: November 6th, 2016, 7:36 pm
Has thanked: 1 time
Been thanked: 1 time

Is this a (partial )solution to the housing shortage?

#14729

Postby casapinos » December 13th, 2016, 2:25 pm

My home town is Newcastle - two universities and roughly 60000 students(i think).Recently there has been an explosion of student flat building , i could count a dozen or more blocks with 100+ flats in each and the local paper references a new planning application every week or two.I would estimate that there may have been approaching 10000 purpose- built flats planned or constructed in the last ten years. So what , you say - well Newcastle has traditionally housed its students in conventional 3 or four bedroom family homes in what where , or became , the less salubrious parts of town. It seems to me that these properties will fall from favour as students move into blocks with a recreation room, free wifi, cafes, etc thus releasing several thousand family homes, owned by landlords, to return to their original purpose.So each university city will find itself with an unanticipated supply of lower-end homes. Over the whole country that could add up to, maybe 50000-100000 homes.Now I know it doesn't solve the problem but it is a useful windfall to the housing market .Can others confirm how widespread the phenomenon is?As a side issue anybody else investing in this?(I hold ESP)

redsturgeon
Lemon Half
Posts: 8911
Joined: November 4th, 2016, 9:06 am
Has thanked: 1309 times
Been thanked: 3665 times

Re: Is this a (partial )solution to the housing shortage?

#14767

Postby redsturgeon » December 13th, 2016, 4:23 pm

I have thought the same myself. It seems to be a reasonably widespread phenomenon driven by the availability of student loans that make it feasible to charge around £600pcm for an ensuite room and shared facilities in a modern block to students.

When I looked at Bristol, where my daughter was looking to study, the city was full of such places. As you say student would rather have new purpose built facilities rather than slum it in a grotty damp cold victorian terrace in a grotty area. I've seen the same in Southampton and I don't doubt it is a similar picture across the country. Several companies exist who sell packages in the developments to investors.

In my own city I am also seeing ex council house stock that was popular with students, coming onto the market in higher numbers than previously. So yes, perhaps in a small way it might add to the housing stock available to non students.

John


Return to “Property Investment Discussions”

Who is online

Users browsing this forum: No registered users and 7 guests