Performing exceptionally well compared to traditional investments over the last year, student accommodation in the UK has outperformed every other commercial property class, supplying regular returns throughout the economic crisis according to the Knight Frank Student Property Report 2012.

The report highlights that student property returns averaged 11.5 per cent in September 2011 and although slowing from 13.5 per cent in the previous year, still continues to lead the returns race in the market among commercial asset classes thanks to a structural shortage of purpose-built student accommodation in the UK combined with increasing global interest in the UK's high ranking educational institutions.

The latest Knight Frank report identifies further rental growth in student accommodation this year. Indeed, while London returns almost doubled to 15.1 per cent in September 2011, student accommodation in the regions outside of London is also robust with investment in towns with more than one university, such as Liverpool, being the most lucrative.

Knight Frank also highlights the UK's unique position to take advantage of the growing influx of overseas students, predicted to double by 2025, thanks to having five universities that are ranked in the world's top 20. Reduced study costs are also attracting international students, derived from the weakness of the pound.

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