Topic Centers

Real Estate Horizons

Real Estate Horizons is a snapshot of key legal topics and market trends across the globe.

In the spotlight: student accommodation

By John Condliffe and Jane Dockeray

Purpose built student accommodation can be an attractive investment. The UK has seen a significant increase in this asset class but the industry is mindful of its future. Here are some of the key threats and trends affecting the market at the moment.

Rights of residential tenants - Student accommodation is regarded as residential property and tenants of residential property have additional statutory protection. Investment into student accommodation must be structured carefully to avoid giving third parties a right to acquire the freehold of a building, require the grant of a lease extension of 90 years in return for the payment of a premium, or exercise rights to manage the building.

Upcoming law reforms – Both the right to manage and the right to acquire the freehold are under government scrutiny and reform is on the radar although the extent and exact timescale is currently not known.

The government has also introduced legislation which restricts landlords and letting agents from charging residential tenants and occupiers (including those in student accommodation) any fees other than those expressly permitted by the legislation. This will not prevent recovery of such fees through higher rents although no spikes in rent at the start of the letting are permitted. This law comes into effect on 1 June 2019.

Additionally, the government will make it mandatory for all private landlords of residential property, regardless of whether they employ a managing agent, to be a member of a scheme for remedying complaints. Notably, this includes all private providers of purpose built student accommodation.

The Brexit impact – The UK is particularly concerned about the Brexit impact and whether postgraduate numbers will be affected. This could have a knock on effect in terms of quality of provision, research, and reputation if universities start to lose their postgraduate students. Competing institutions in other countries would be keen to pick up on lost numbers.

Long term vision - The industry needs to monitor emerging markets such as China and India, and the changing higher education culture (shorter degree courses and the rise in online courses) to future- proof the appeal of the UK higher education market.

Hogan Lovells Publications

Back to basics: what to do when you receive a break notice Keeping It Real Estate

In the current climate, all types of occupiers including occupiers of retail, office and warehouse space, will be considering their leasing requirements and looking to rationalise their...

Quick view Full view

Hogan Lovells Publications

Opposing a lease renewal on redevelopment grounds – a helpful case for landlords Keeping It Real Estate

The case of London Kendal Street No3 Limited v Daejan Investments Limited (2019) provides some useful guidance on what a landlord needs to show in order to successfully oppose a...

Quick view Full view

Hogan Lovells Publications

Section 21 is dead. Long live section 8! Keeping It Real Estate

The future of the UK rental market is emerging. The government wants views on its plans for removing the assured shorthold tenancy (AST) regime and bolstering the court process for gaining...

Quick view Full view

Hogan Lovells Publications

Motive Matters … Can land owners rely on redevelopment plans to resist Code rights? Keeping It Real Estate

It has been almost 18 months since the new Electronic Communications Code changed the legal landscape for telecoms operators and land owners. At its core, the Code is a framework for...

Quick view Full view

Hogan Lovells Publications

Game, set and match for leasehold housing and ground rents: Government responds to its consultation on leasehold reform Keeping It Real Estate

Last week saw a volley of government announcements for the private rented sector and investors in leasehold residential property. At the Chartered Institute of Housing Conference on 27...

Quick view Full view

Hogan Lovells Publications

Sustainability – where are we now? Keeping It Real Estate

What are the main sustainability issues currently affecting the real estate industry? And what are the practical implications – will they cause a change in behaviour?

Quick view Full view
Loading data