When most people think of student accommodation they think of grotty houses and flats but the new trend for building private student residential halls is completely different to that. Now the Daily Telegraph has taken a closer look at this new breed of student accommodation to find out why undergraduates are so willing to pay extra for creature comforts.

The issue of providing enough student accommodation now that the recruitment cap has been lifted is becoming a bone of contention for universities in the UK. Most universities will be recruiting increasing numbers of students from September and it looks like there will be growing demand for private student accommodation – especially in halls of residence.

Students are willing to pay a premium for quality accommodation but which university towns offer the best returns and yields for an investor as a result?

Growing numbers of investors are moving into a rental property as a means of boosting their returns and the best profits to be had in the sector are from student accommodation. There are several different types of student accommodation and many people associate student digs as being run down and neglected but students will no longer live in these properties.