Factors that affect the return on investment on a portfolio of student housing: a case study in Portsmouth

Goodman, Oliver, R.S. (2011) Factors that affect the return on investment on a portfolio of student housing: a case study in Portsmouth. BSc dissertation, University of Portsmouth.

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    Abstract

    Purpose: As higher institutions do not provide enough places for its full time undergraduate students in their halls of residences this creates a niche market in the private residential rented sector. Although these type of investments are profitable, the research purpose is to determine what and how the factors affect the return on investment using a study in Portsmouth, Hampshire, UK.

    Methodology: Mainly qualitative methods are used in this paper, for objectives II - IV, with semi-structured interviews conducted in the face-to-face method that comprise of both ‘open’ and ‘close-ended’ questions. However, telephone interviews where undertaken for the interviewee who could not undertake the face-to-face method. While for objectives I and V the focus is on quantitative methods, with sensitive analysis testing and Monte Carlo simulations used for objective V.

    Findings: The factors that affect the return on investment which this paper has identified are the; Bank of England base rate, inflation, student demand, local housing market, quality of the tenant, maintenance costs, rentable value, length of contract, void periods, claiming of the tax deducible items, legislation, property management, portfolio size and gearing.

    Research Limitations/Implications: As this paper is a small-scale research project the main limitation is that the paper is only based in one city, Portsmouth. The implication of this limitation is that the findings might vary between university cities. Future research could address this issue with a comparison between a number of university cities to see if there is a link between the type of institution.
    Practical Implications: This paper has an implication upon the practitioners (landlords) who do not maximise their returns on investment, which can lead to changes in their practice.

    Originality/ Value: This paper is new because it focuses on student landlords operating in Portsmouth with the nucleus on the factors that affect the return on investment, which is the first paper of its kind. The value of this paper is for both academics and practitioners. The value to academics is to address the awareness of the practitioners on the factors that affect the return on investment. The practitioners who operate or intend to operate within the private rented student accommodation, this paper will shed a light on the sector.

    Item Type: Dissertation
    Departments/Research Groups: Faculty of Technology > School of Civil Engineering and Surveying
    Depositing User: Jane Polwin
    Date Deposited: 17 Nov 2011 16:57
    Last Modified: 28 Jan 2015 11:48
    URI: http://eprints.port.ac.uk/id/eprint/5384

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