Lancaster, a historic city in the North West of England, is experiencing a surge in demand for student accommodation. This trend is reshaping property investment strategies and prompting investors to reconsider traditional approaches.
The Growing Demand for Student Accommodation in Lancaster
Lancaster is home to two prominent universities: Lancaster University and the University of Cumbria. Lancaster University, in particular, has seen a significant increase in student numbers, with enrolments rising by 16% annually since 2008/09. This growth has intensified the need for quality student housing.
Recent developments reflect this demand. For instance, a £32 million investment is underway to construct 388 new student flats in Lancaster, featuring modern amenities such as gyms, cinema rooms, and communal study areas. Additionally, the redevelopment of historic buildings, like St Leonard’s House, into 179 student flats underscores the city’s commitment to expanding its accommodation offerings.
Shifting Property Investment Strategies
The increasing demand for student accommodation is prompting investors to adapt their strategies. Traditional buy-to-let models are being supplemented with investments in purpose-built student accommodation (PBSA), which offers higher yields and more stable returns. For example, properties like The Mill, located near Lancaster University, are attracting investors due to their proximity to campus and high-quality amenities.
Moreover, the consolidation within the student housing sector indicates growing investor confidence. In a recent £723 million deal, Unite Group acquired Empiric Student Property, highlighting the sector’s resilience and potential for growth.
The Role of Estate Agents in Lancaster
Navigating the evolving student housing market requires local expertise. Estate agents in Lancaster play a crucial role in guiding investors and landlords through the complexities of the market. Their knowledge of local regulations, property values, and tenant demands is invaluable. For those seeking professional assistance, Northwood Lancaster Estate Agents offers comprehensive services tailored to the city’s unique property landscape.
Conclusion
Lancaster’s growing student population is driving a transformation in the local property market. Investors are increasingly focusing on purpose-built student accommodation to meet demand and achieve favorable returns. Collaborating with experienced estate agents in Lancaster can provide the insights and support necessary to navigate this dynamic market successfully.
