Owners are liable for UK tax on the rents they collect from students, but can receive the money before tax and reduce the amount they have to pay by offsetting expenses and debt repayments.
And isn’t this an indictment of the higher education system?
The National Union of Students vice-president for welfare, Izzy Lenga, said UK students were seen as a cash cow by overseas investors, and often had no choice but to take rooms in “overpriced glass towers”.
Lenga said: “Overseas investors make billions of pounds building luxury apartments and charging sky-high rents for students. There is a cost of living crisis and finding good-quality affordable accommodation is a huge barrier for low- and middle-income students attending our world-leading institutions.”
Building more student housing does rather reduce the cost of all student housing, doesn’t it?