Appointment agreements are made between the university and the accommodation institution, with the agreement to designate a minimum number of students in the accommodation each year and for an agreed period, in exchange for rent control and certain business matters. Direct Lets`s performance (excluding higher education agreement) is expected to be 5% in London and slightly higher in major cities outside the capital, including Bristol, Manchester and Birmingham. The company also announced a commercial update that showed that reserves for the 2020/21 academic year, which will begin in September, were 80% (minus 8% compared to the beginning of the 2019/20 academic year). Half of them are supported by contractual appointment agreements. „Even street lenders provide loans for student housing backed by an appointment agreement,“ says Jonathan Fewster. Jonathan Fewster, a partner at Bircham Dyson Bell LLP, believes that student housing is where investors attract attention because it can be supported by university appointment agreements, putting the institution, not the investor, at risk. The Board of Directors of Empiric Student Property plc is pleased to announce that the group has entered into an appointment agreement with the University of Bath (the „appointment agreement“) for the group`s three operational properties (Piccadilly Place, Canal Bridge and Widcombe Wharf) and two anticipated related assets expected to be completed in September 2016 (1-3 James Street West and James House) in Bath. The appointment agreement is for five years from the beginning of September 2016 (with the exception of the 141 James House studios that are covered by the one-year appointment agreement from the beginning). Another type of student accommodation project is that of university projects on campus, where the university has different levels of control, but often to obtain this control, the university must make a commitment through an appointment agreement. Dividends are expected to be reintroduced after the start of the 2020/21 academic year, when 94% of the rent has been recovered under appointment or leasing contracts for the 2019/20 summer period. The appointment agreement provides the university with special access housing for its students and provides it with a fixed-term income, usually for a period of five years.
Although an agreement has been widely spread for 25 years and beyond, where there is an obligation in advance for a new development. „Where the university takes the risk, it`s easy to understand why investors and lenders would want to invest on the street – it`s a reliable confederation; Contracts can last 25 years and guarantee the rental of beds regardless of the fluctuation of demand. Commercially purchased student accommodations are generally categorized into two categories: If you would like to discuss any of the issues raised in this article, please contact Ken Ross or Euan Mitchell.