Investors looking to develop property for student use should look towards newly-built accommodation, according to an expert.
Peter Midenhall, a researcher at IPINGlobal.com, said that the tradition of converting an old semi-detached home is now falling by the wayside.
This is because there has been an increase in rental regulations and requirements, with many properties needing their key features upgrading.
These include the heating system, boiler and other gas appliances, which could all pose problems if they are not up to scratch.
"New-build developments with planning approval and support from the university and local council are the primary things to consider. Some developers will also include management services or companies which will appeal to more active investors," Mr Midenhall went on to say.
According to Knight Knox, universities are currently experiencing an overwhelming number of applications, which is putting pressure on the accommodation market in areas with higher education facilities.