Student Visa Changes and Demand for Student Property in the UK

Photo by Tim Gouw on Unsplash

Recent changes to student visa rules could significantly benefit investors in UK property, strengthening demand for an already highly subscribed asset class. The new rules mean that foreign students will have a two-year period in which to look for employment after receiving their diploma, able to seek employment in any number of the UK’s world-leading industries. The change applies to those starting courses beginning late next year. A number of educational consultancies in traditionally strong feeders of foreign students into the UK such as China and India[i] have reported a flood of enquiries about Undergraduate and Postgraduate applications, showing the UK to be an attractive destination for foreign study in spite of uncertain political and economic conditions. 

We forecast that this will benefit the UK property sector in a number of ways. Not least, it is likely going to lead to an increase in the number of international students, who can be more certain of the investment in a UK degree. This is likely to increase demand for PBA (purpose-built accommodation) and therefore provide more opportunity for investment, especially in areas surrounding universities. Moreover, the visa scheme was changed with the express purpose of bolstering the UK’s tech talent, allowing our economy to benefit from skills that might otherwise have been lost due to stricter visa rules in the past. STEM graduates tend to command some of the highest salaries in the market and therefore demand for housing in major metropolitan areas could be expected to rise as a result. In short, having long benefited from foreign demand from students, the UK housing market only stands to benefit from this change in visa policy. 

Here at Yielders, we have always believed in providing long-term, sustainable investment opportunities to our investors. PBA, especially student housing, has proved a strong performer for us as we continue to seek out assets that combine both a strong yield and mitigated risk. This news affirms the analysis of our investment team, who work hard to bring our users the strong performance that they want, combined with the responsibility and clarity that they expect. For more information, please feel free to get in touch with one of the team by emailing team@yielders.co.uk

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