Some institutional investors are opting to become private landlords in the student housing market, instead of investing in the commercial property sector.

That is according to a partner at real estate wealth management organisation, Nick Harvey-Jones, who has suggested that the recent problems in the commercial sector have resulted in landlords having to offer rent-free periods and other incentives.

It is often the case that these type of issues do not occur in the student buy-to-let market, he added.

"With student housing - whether it is direct lets, whether it is nomination agreement rents or whether it is pre-let to universities - you don't have these problems,"Mr Harvey-Jones explained.

Earlier this month, UNITE Group reported that institutional investor sentiment towards student property - which can be a particularly lucrative business in large university cities such as Manchester or Birmingham - has grown.

It was stated that like-for-like rental growth increased to 9.7 per cent between July 1st and November 18th 2009.

Written by Mark Garner

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