Location, security, personal space, amenities and a good standard of living were always high on the agenda when students came to deciding where they wanted to live. But the latest trend of boutique student accommodation offers a lot more than the basics.

UK student accommodation has grown as an investment class (indicators show that investment volumes hit record levels in 2015, exceeding those seen in the US), as developers and operators have become more conscious of how they can deliver a consistent rental return. The best way to do this, they've discovered, is to offer both domestic and international students an aspirational lifestyle and facilities that they are willing to pay a premium for.

The standard studio room has therefore been replaced by 'two-dios' and 'three-dios', luxury, and even penthouse apartments in order to appeal to a larger variety of students. Much like in a hotel, rooms do differ, with a variety of rental rates to give the property a wider appeal, particularly to those from overseas who perhaps aren't quite so used to the idea of 'slumming it' in halls.

Room type, however, is not the only way to attract the best rental returns. Investing in a high-quality fit-out also pays dividends. The specification of finish on some of these modest living spaces would likely put some hotels to shame. Each of the one-person room configurations comes with its own kitchen, complete with Corian worktop, four-ring induction hob, seating and dining area with LED feature lighting and a number of added extras. While the wine fridge may have fallen victim to space limitations, it is clear that considerably more thought now goes into these kinds of refurbishments then they once did.

Outside the immediate living area, placemaking is key and 'common areas' now extend far beyond the laundry room of old. Private gyms, gratis coffee shops and study areas help create an environment that facilitates social interaction and co-learning.

As tuition fees have increased and the choice of whether or not to go to university at all becomes harder to make, investors are going to great lengths to ensure that their halls have the ‘wow’ factor to appeal to potential students.

Some UK university accommodation has yet to be updated and may be tested by the new breed of developer and specialist led products. Now is the time to refurbish before next year's freshers enrol, but also for developers to continue to compete to be the accommodation of choice for students.

Further information

Contact Savills Building & Project Consultancy