Whether you’re an experienced investor or you’re just starting out, student property is a great investment to get on board with. The student property market is booming, having grown from £3.1 billion to £5.3 billion by the end of 2017, and rates of student property investment are expected to increase by 17% by the end of 2018. If the figures aren’t enough to convince you, take a look at these five reasons you should consider investing in a student rental property.
High student populations
The student population in the UK is steadily on the rise. Home to four of the UK’s top ten universities, it’s no surprise that our country’s student cities are growing each year. This growth in the UK’s student population is partly due to an influx of international students. International students are said to contribute around £20.3 billion towards the UK economy on an annual basis, having welcomed around 450,000 international students during the academic year of 2016/17. This is a number that’s only expected to grow further, estimated to reach 600,000 by 2020.
Student property will always be in demand
A high population of students, especially one that’s growing year on year, means student property will always be in demand. Cities such as Manchester and Liverpool are some of the most popular student cities in the UK, with Manchester boasting the country’s largest single site university campus. These cities, amongst others in the UK, are undergoing a number of major renovations and regenerations which are set to bring a lot more interest to the North of England and improve economic growth. Amongst these are the Royal College Of Physicians in Liverpool and the National Graphene Institute in Manchester, both of which are developments set to boost the academics of each city further and welcome more specialist students to the cities.
Net yields are high
Net rental yields are notoriously high when it comes to student property. Student buy to let properties are typically a lot lower in cost compared to residential properties, without much difference in rental costs for tenants. RW Invest are a property investment company with great opportunities available for those looking to invest in student property, offering the lowest priced student property in the UK at £45,450 with an 8% net rental return.
Purpose built accommodation is increasingly popular
Gone are the days where the only student accommodation available was cramped university halls, or grotty shared housing. Today’s students have different attitudes towards accommodation, favouring stays in modern, well-designed apartments during their studies. This type of properties are particularly popular as they’re often based in convenient locations close to the city’s university campus, and offer amenities such as high speed internet and communal garden areas. The demand for more high quality student apartments is becoming more popular in recent years, partly due to the increase in international students with more affluent backgrounds.
The possibility for long term tenants
When renting residential properties, such as renting an apartment to a young couple, there’s no guarantee that they’ll stay in your property past their contract date. Residential tenants could be planning to buy a house of their own to live in, or decide to move to a new area. While there’s no guarantee of long term tenancy with students, there is a higher chance that they’ll take up tenancy for the full duration of their studies, provided they’re happy with the property.