With over a hundred universities and around 2.3 million students, student accommodation is in high demand across Great Britain. Students are keen to move away from home and gain independence, and investors are eager to get into this lucrative property market.
There are several appealing features that are attracting investors:
The UK student property market has an estimated worth of approximately 46 billion, according to Estate Agent consultancy Knight Frank, with £2.3 billion promised for research and development departments across the country helping to attract a diverse range of students.
An advantage of student property is that you can expect rents between £100 and £200 per week, offering investors a fantastic return on investment and average yields of up to 7%. Students are happy to pay quite extensive rates to be in luxury student developments with adequate amenities and easy access to the campus, city centre and transport links.
There is also the possibility of gaining income from multiple students under one roof to maximise rental income and further profits. Many students will choose to live in individual units that share communal kitchen and living area facilities, with second and third years sometimes opting for shared housing as a more independent alternative for study away from home. Investors can get the most out of a single investment by utilising the nature of shared student accommodation.
A 2.2% rise in applicants from overseas students since 2016 is also a positive, with trends suggesting that most students from abroad are from wealthy backgrounds and can thus afford to make the move over to the UK when it comes to higher education. Parents prepared to fund some of the most expensive student flats to ensure the safety, security and comfort of their children.
Letting periods are usually bound to last 1 year at a time, so buy to let investors can sit back and relax during this period without worrying about finding new tenants. The great thing about student property is, that as soon as one student moves on, the undersupply of satisfactory accommodation means that it won’t be long until your student unit is back in business.
In addition, most student accommodation is fully-managed, taking all of the hassle away from the investor whilst ensuring that the tenants are happy. It couldn’t be easier for modern-day investors to enter into this profitable market with the least of fuss.
The North Proves More Popular
With 87% of full-time students studying outside of London, the north is certainly a hotspot for buy to let student investments. Many cities such as Liverpool and Manchester have been transformed from run-down industrial sites into cool and edgy university hotspots that students from southern England and the rest of the world can’t wait to visit.
In fact, Manchester was ranked 25th best university in the world by a QS Best Student Cities survey, and also features high up in league tables for student satisfaction, most affordable cities for living costs and best cities for student nightlife.
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