With one day to go before the big EU Referendum vote we have been asked on a number of occasions what we think will be the most resilient property investment asset to get involved with. Our simple answer to that is student property.
Should the UK vote for Brexit tomorrow, then student property is likely to weather the storm better than other property investments.
Whilst Brexit would be certain to have an impact on visa requirements and push fees up for EU students, it is the students from outside of the EU, particularly in the Far East, that will make up any short fall.
Cost is not the only consideration when it comes to studying for a university degree and the prestige that is attached to obtaining a degree from a top UK university isn’t likely to go away. This is what attracts students from India and the Far East the most and they are prepared to pay more for the privilege.
Although some companies are waiting until after the referendum before making investment decisions, many international investors seem undeterred by a potential Brexit and are attracted by the yields that student property can deliver.
If sterling falls as a result of Brexit, then this could give the UK a competitive advantage in attracting the best non-EU students to the country. Property specialists Knight Frank have already identified strong investment in the student property market despite talk of a Brexit and they have indicated that they don’t see the flow of international students to the UK grinding to a halt should Brexit happen.
Walter Boettcher, Chief Economist at Colliers International, the leading global real estate company, stated that student property is a “long term investment” and will remain an “indispensable part of Britain’s basic educational infrastructure.”
In light of these comments, student property is likely to prove more resilient, whatever the outcome of the EU Referendum.
To find out more about student property investments and the yields they are likely to deliver in a post EU Referendum UK, please contact us now on 0333 3001 888.