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London’s student population will double by 2025

London’s full-time student population is expected to rise by 50% in the next 10 years while capital flows into student housing is expected to triple reaching £5.7bn by end of 2015, new research by property firm JLL revealed.

Direct investment in the UK Student Housing market has surged over the past two years, rising from under £500m in 2010 to £3.8bn over the first half of 2015 (£1.5bn in London). Non-EU students have been the fastest growing segment, with numbers increasing by 50% over ten years. A recent study by London First shows that international students bring a net benefit of £2.3bn per annum to London’s economy supporting 60,000 jobs in the capital.

The research further highlighted that rising house prices and constraints on mortgage lending have forced more people into rented accommodation. More students are also renting; 28% of London’s student population are living in Houses of Multiple Occupation (HMOs).

Philip Hillman, chairman at JLL’s alternative division said: “We have seen extraordinary growth in UK student numbers over the past 20 years and while UK student numbers are now stabilised, international student numbers are set to rise dramatically in the next decade. The provision of good quality student accommodation was traditionally the responsibility of the universities but in recent years, most new accommodation had been provided by private investors and developers.”

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