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Oversupply Doesn't Deter Developer

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Work has started on a £3.5 million block of student flats in Plymouth.

Located next to the university campus, Hermes Great Estates plans to have the accommodation in North Hill Court ready in time for the start of the 2019-20 academic year.

The three-storey development will consist of 39 studios and one-bedroom apartments, which Hermes plans to lease for £79,950 and £90,950 respectively.

The company is working with Bailey Partnership to build the scheme and is confident it will be able to fill the flats despite the market being oversupplied with purpose-built student accommodation.

Hermes is about to enter discussions with the university about having the site endorsed by the University of Plymouth.

Commenting on the build, a spokesman for Hermes said it looks at location, building type and student need, before making an investment and believes it can do well even in cities with a lot of accommodation in place.

It plans to fill most of North Hill Court with overseas students and will manage the building itself.

Hermes specialises in luxury residential and commercial projects and has already built more than 1,000 student flats nationwide in the last 15 years.