Many may speculate that the cost of Student Accommodation in Birmingham is expected to become a little more varied in the next few months. However despite the future course fee increases, the need for student accommodation in the UK was described as ‘booming’ in 2011! The sector was classified as the ‘best performing property investment sector’ in a broadcast issued by the market leading letting agency Knight Frank (Published May 2011). They also state that the “total returns in 2010 for student accommodation in the regions did better than all other property sector”. And moreover, James Pullan (Knight Frank’s rep for student property) said “The student accommodation sector is now recognised as forming a crucial part of a balanced investment portfolio”.
In the Knight Frank Student Property publication 2011; London, Brighton, Edinburgh and Oxford are ranked in the top five cities to invest in property in the UK. Student Accommodation in Birmingham is ranked at number 19. In a more recent document Knight Frank stated London student property earnings increased by two fold in 2011! This is said to be due to “Limited supply in addition to rising global appeal in the UK’s educational excellence”. Which in tandem “points towards further strong rental growth in the sector”.
So, what does this mean for the cost of letting Student Accommodation Birmingham?
The University of Birmingham guage the cost of living for a single student over a 42-week academic session is £283 a week or £11,866 for the whole period. For students who rent a room in a private shared house, this declines to £245 or £10,290 over the same period.
The actual price of letting in either University owned, or private halls of residence ranges from around £110 to £190 a week. This number is mostly 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 properties the weekly rental figure is reduced to around £50 to £90. This value is dependent on the; proximity to the ‘student area’, proximity to university and other amenities (E.g. Tesco’s), number of tenants sharing, size and finish quality of the property, the provision of facilities (E.g. mounted TV’s), and whether bills are included (E.g Electric).
The RBS Student Finance survey listed Birmingham as the seventh most cost-effective student city, out of 27 locations in the UK. The survey included points such as; the price of letting student accommodation in Birmingham, going out, shopping and more.
Whatever your circumstances, if you are prepared to compensate on one or more variables above – it will vastly reduce the annual cost. E.g, living close to University in a recently done up flat with a medium to large number of rooms will be markedly more than an equivalent property an additional one mile walk.
Considering the tuition price increase starting in the next academic year (2012-2013), its possible to speculate that the approximate rental ranges shown above are unlikely to alter too much when considering the demand for higher education in the UK and Student Accommodation in Birmingham.
This prediction is based on the fact that Knight Frank believes “The winners from the new tuition fees regime will be the most prestigious universities amid a flight to quality as students look for the very best course available for their fees. The losers will be the least renowned institutions offering commercially unattractive degrees” (2012).