Investors in the student accommodation market will continue to see good returns thanks to Britain's education system being one of the best in the world.

Kamlesh Padhra, director at Infinity Property Solutions, said that higher tuition fees will continue to attract foreign students to this country, which as a result will ensure that halls of residence are still required around all towns and cities where there is a university present.

"I believe, in certain urban areas the student accommodation areas will grow due to the demand for places at good universities. One of the key areas I believe where there is a good investment plan and growth would be Hatfield in Hertfordshire. New development blocks are going up on a yearly basis for student rentals," he added.

Mr Padhra went on to say that the key success to this is that the University of Hertfordshire attracts a lot more foreign students and also those from local counties due to the low cost of tuition fees compared to other universities locally, while there are also a large variety of courses on offer.

In Plymouth, work is now getting into full swing at the 1.2-acre Notte Street site, where a nine-storey tower is being constructed for student flats.

The Student Housing Company purchased the land from Plymouth University for £3.5 million and has now brought in The Leadbitter Group to build the block. Once finished, it will feature 517 study bedrooms, 59 flats, 73 studio rooms and communal spaces in three different areas.

Planning permission has also been granted for shops and restaurants on the ground floor, while there might also be room for a supermarket.

However, students moving to the south for university might be paying twice as much as those in the north, according to research.

Accommodation for Students revealed that London students pay an average rent of £107.29 per week, with Pontypridd in Wales coming in at the cheapest at £45.94.

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