Investors are jumping on the bandwagon to take advantage of the fantastic returns of around 10% being made from the student housing market. This far outstrips the majority of other types of investment.

Institutions and individuals invested more than £1.6 billion into student housing from January to September of last year.... so says a property consultant.

It says that 9.95% is the average yield return  that investors can expect and outperforms investment returns from commercial property.

One of the reasons for this remarkable growth outlined in the company's report, is the government's continuing supporting for education, which "fires" market confidence.

In Chancellor Osborne's autumn budget statement, he said that the government was going to continue to invest in students' education by creating up to a further 30,000 extra university places in the new educational year. He added that after the 2015-2016 year he expects that caps on numbers for places will be dispensed with. Is it no wonder that investors wish to jump in quick to take full advantage ?

The property consultant's Jo Winchester strongly urges that there will be significant growth in the student housing sector.

Winchester said: “International students spent over £10 billion on tuition and living expenses in 2011 /12. We expect the number of international students in the UK will grow by 15% – 20 % over the next five years, as the demand for English-taught degrees continues to lure students from across the globe,

“The result of this popularity is reliably high occupancy rates in student residences and stable income streams, making the sector an attractive prospect for small and large investors alike. Rental values for student accommodation in regional towns have increased by an average 3.5|% in 2012/13, showing healthy growth across the UK.

“The UK’s student accommodation sector is taking the interest of a wide variety of investors. US multi-family and student housing operator Greystar recently purchased a portfolio previously operated by Opal worth £310 million.

“Australian student housing operator Campus Living is understood to be preferred bidder on a portfolio of 4,539 beds previously run by Opal. 2013 has also seen the launch of the first dedicated student housing REIT, GCP Student Living, on the London Stock Exchange, offering smaller investors a new route into the sector.”