Student property investment continues to outperform all other forms of buy to let property investment. Analysis fromSavillshas this year revealed student accommodation investment will reach £5.3 billion by the end of 2017 and that the student property investment market provides huge opportunities for investors.
Student Accommodation Investment Yields
Are you considering a student accommodation investment? In their recent UK student accommodation report,Cushman & Wakefieldpostulate an average headline rental growth of 2.9% between 2016/17 and 2017/18. The development of the student buy to let sector correlates with the globalisation of higher education. As international student numbers increase in both the UK and US, other markets have recognised their essentiality in terms of economic growth.
Research by Knight Frankhas revealed that £3.1 billion was invested in the UK Purpose Built Student Accommodation (PBSA) market in 2016, more than double the levels seen in 2013 and 2014. In all markets, however, PBSA remains undersupplied, so there are now huge opportunities across the UK for investors.
Student property investment is a stable asset class due to its promise to be tenanted year on year. Developers are currently capitalising on both a lack of funding from institutions and an increasingly demanding student body who are now eager to rent accommodation that can offer luxury and high tech facilities such as gyms, cinema rooms and cafés.
University owned accommodation cannot keep up with this demand, which has resulted in more than 70% of students now looking for privately owned accommodation. With demand high and supply low, investors can benefit from high tenant demand and low entry prices on student investment properties, with high annual rental income.
Student Buy to Let in the Northern Powerhouse
According to recent figures, more people than ever before are leaving the Big Smoke than are moving there. Many are now looking to the more affordable and up and coming cities ofthe Northern Powerhouse such as Manchester and Liverpool. Accordingly, investors are following.
In 2017, both Private Finance and Totallymoney.com ranked Liverpool number one in the UK for buy to let yields and student accommodation investment yields are no exception. The city’s population of young professionals and students is growing as it attracts people from all over the world. In 2012, there were 57 million visitors to Liverpool, supporting over 50,000 jobs.
Proportionally, Liverpool has the highest number of overseas students. The city also has one of the best environments for students in the UK, ensuring it will remain a popular student location for the foreseeable future.
Like Liverpool, Manchester is a friendly and vibrant city, offering an endless array of cultural and creative amenities to students as well as a thriving nightlife. In addition, compared to many other large cities, the cost of living in Liverpool and Manchester is quite affordable for students.
Manchester is establishing itself as the UK’s unofficialsecond city and is now a key business hub within the North West. Significant investment is being made across Greater Manchester into all sectors of the economy. Notable infrastructure spending will make Manchester one of Europe’s best integrated cities with seamless transport solutions for its citizens.
The phenomenal growth taking place in both Liverpool and Manchester promises strong capital appreciation for investors committed to investing in student accommodation.
Student Property Investments for Sale
At RWinvest, we specialise in luxury student buy to let investment properties and believe that the very best student investment opportunities are located close to universities and amenities, offering residents the highest standard of living.
All our student properties are idyllically located, luxuriously furnished and offer high tech facilities to cater to the modern demands of the student demographic. Not to mention, the student buy to let investment properties we sell are purpose built and managed by experienced management companies, meaning they provide a hands off investment opportunity with tenants sourced for you – often ahead of time. We have an impressive portfolio of student pods for sale, located in areas, which are currently benefiting from increasing regeneration and investment. Visit the following link to see ourLiverpool student accommodation investment opportunities. Likewise, take a look at our student pods for sale in Leicester.
Alternatively, you cancontact RWinvest directly; our experts are always available to discuss your investment plans and offer advice and guidance when it comes to student accommodation investment yields as well as the best places to invest in student accommodation.