By Henry Faun
Global foreign exchange and overseas students are strengthening the UK real estate sector
Overseas students in the United Kingdom (UK) will have two years to find a job after graduation, the UK government announced in early September, an increase from the current period of four months, which was introduced in 2012. Prime Minister Boris Johnson said the change was designed to help students “unlock their potential” and start their careers in the UK.
The move is likely to increase demand from international students and their parents for lettings and sales properties in London and across the UK’s key university cities.
Students in the UK coming from the Middle East make up a significant part of the London lettings market. Occasionally, families choose to purchase real estate in the UK when studying. This change will only help to strengthen that trend further and assist Middle Eastern students gain graduate employment in the UK.
“The extension... comes against the background of the government’s commitment to increasing international student numbers”
Based on Knight Frank data on agreed tenancies, the firm has had the highest number of Middle Eastern renters aged between 17 and 30 in 2018 since 2010 - a 20% increase from the same age group in 2017.
Overall, student lets accounted for 21 percent of all tenancies agreed by Knight Frank in the 12 months ending August 2019 in London. That was an increase from 17 percent over the previous 12-month period.
The extension of the time available for overseas students to find employment comes against the background of the government’s commitment to increasing international student numbers.
Its education strategy, released in March, aims to increase international student numbers by more than 30% to 600,000 by 2030. It plans to generate £35bn ($45.1bn) through tuition fees and other sources of revenue, such as British schools with overseas campuses.
The global daily currency turnover surged to a record $6.6 trillion, with London shrugging off Brexit uncertainty to extend its lead as the world’s dominant trading hub, the Bank of International Settlements (BIS) said, according to a Reuters report.
The incentive for parents to send their students to the UK for their higher education has now increased due to the release of this news.
With the recent depreciation of the Sterling, those denominated in currencies pegged to the US dollar, such as the UAE Dirham in the Middle East, benefit from a relative discount of around 20 percent, making a UK education much more cost-effective.
This shows a positive outlook for students looking to study abroad. The UK could provide a cost-effective, comfortable and wholesome student experience with high quality education.