The Capital’s quality of education and wider appeal is reflected in its status as one of the top two Best Global Student Cities again this year, and its 64% student population increase over the 15 years to 2010/11. With minimal competition, this is forecast to expand by over 45% over the next decade.

London’s particular international appeal has seen its overseas student population increase by 81% over the past 10 years, and is forecast to increase by more than 110% by 2021/22.

Despite the Capital’s significant draw, it remains the most undersupplied student accommodation market within the United Kingdom, with 81% of London’s student population unable to access purpose built premises.

The pent up demand for high quality, purpose built accommodation is reflected in the rental growth for studio units and ensuite rooms over 2011, at respectively more than 8% and 9%. Overseas students are a major contributing factor to this, seeking purpose built premises such as England’s Lane Residence, for the duration of their studies.

Over the year to September 2011 the sector's total returns in London almost doubled from 8.4% in the previous year to 15.1%. Rental growth has been key to this performance. The structural undersupply of purpose built bed spaces is set to continue for the foreseeable future, with total returns forecast to achieve over 12% for the 2012/13 academic year.

England’s Lane Residence is well placed to capitalise on London’s undersupply, and the sector’s significant rental growth. The asset is already configured as studio units, located in the desirable NW3 area, with excellent amenities and transport links, and is in close to proximity to Central London and multiple university campuses.