Student Numbers Could Impact On Landlords

One of the few areas of growth and stability in the property market over the last few years has been the student rental market.  Every week I get bombarded with details about purpose built specialist student accommodation for sale promising high yields and steady growth.  Generally growth in student numbers and it's cash generative abilities has kept values resilient. The big driver for demand for purpose built accommodation has been the influx of affluent foreign students.  However, I'm thinking this may not continue.

Student numbers
With average student debts getting close to £60,000 surely more prospective graduates are going to ask the question... why?  Will I ever really get this money back and do I really want to be saddled with this huge debt.  Immigration controls may impact on the number of foreign students able to study in the UK as was the case recently with Indian Students.

The confidence in the student rental market has drawn considerable amount of investment into the market resulting in supply in specialist accommodation increasingly significantly.  At which point will the fall in student numbers impact on the value of student accommodation?  I'm not sure, but I just have the feeling that student accommodation may not be the risk free investment that is often portrayed.

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