08 Nov 08.11.2017 Luxury student accommodation for wealthy students
08.11.2017 Luxury student accommodation for wealthy students
The average cost of student accommodation in the UK is about £90 per week. However, in some areas of London, parents are paying almost 100 times that to secure the best luxury accommodation for their child.
This year almost 50% of real estate agent’s clients in Covent Garden have been wealthy students mostly looking to spend £700-£1000 per week. However, there are some parents, concerned with the security and comfort of their children, who are renting spacious top end two to five bedroom apartments, paying over £7,000 per week for properties with a 24-hour concierge, entertainment rooms, private gym and spa.
Two thirds of students looking for luxury accommodations are from overseas and are funded by their parents. Many are postgraduates studying business or management at London School of Economics (LSE), University College London or Regent’s University. Hence, Marylebone and St John’s Wood, near LSE and London College of Fashion, and South Kensington, situated in particular proximity to the Imperial College London and the Royal College of Music, are the most popular areas with wealthy students.
Despite the amount of luxury private student halls on the market, affluent overseas students are looking for new-builds or freshly renovated properties. Almost 300 private halls opened in the UK last year. Students in London are paying £233 per week on average for privately let halls, with Zone I being the most expensive area where an average cost of renting a studio flat in private halls is just under £500 per week. Nevertheless, despite the rents being sky-high, there is a lack of property available to students to rent.
In addition to the increase in the amount of wealthy students renting, more parents are purchasing luxury properties for their children. Around 20% of parents are currently purchasing a property for their child as opposed to renting. However, due to recent uncertainty caused by Brexit and different tax implications many European parents have decided not to purchase property in the UK, as their children may not live and work in London after graduation. Hence, the rental sector has boomed further.