Banks have cooled lending on student accommodation
Banks have cooled lending on student accommodation, because of fears that the increasing student tuition fees could have a hampering effect on the sector. We expect some cities, especially those with an over-concentration of student housing, and some universities to be hit by next year’s rise in tuition fees,” said Stewart Ward, head of the education sector at RBS Corporate and Institutional Banking in an interview with Reuters.
This drop in bank lending is not yet affecting the supply/demand dynamic in a noticeable number of places. Sure, this is partly because the lending tap only began tightening 6 months ago, but it is also because developers are finding themselves able to access financing for student-accommodation developments and conversions through other channels …