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The Complete Guide to Student Property Investment

In the UK, student property investment presents one of the most lucrative options for buy to let investment, and seeking student accommodation in the UK is a smart move for those who want high rental returns and consistent demand.

The market for buy to let student property in the UK has grown rapidly over recent years, with the UK student market having outgrown the US student property sector back in 2015.

With a rise in student applications seen over the past year, we at RWinvest have witnessed continuous levels of interest in the student property market from investors around the world.

Today, anyone who’s considering building a property portfolio in the UK won’t ignore student property investments, recognising the potential that this type of investment has to offer. But is student accommodation a good investment?

With over 17 years of student buy to let experience and a talented team of student property investment experts, we’re passionate about encouraging more people to take advantage of the fantastic opportunities available with student accommodation investment.

This is why we’ve created an in-depth guide to student property investment, offering essential tips and information for those considering finding a student accommodation investment for sale.

If you’re new to the UK property market and want to find out more about this popular investment option, or you’re an experienced investor and unsure if student property investment is right for you, take a look at this detailed guide to investing in student accommodation in 2021.

In this guide to UK student investments, we discuss what student property investment is and the benefits of student accommodation investment, and explore the best areas in the UK to buy student properties. We also provide answers to some commonly asked questions about student buy to let.

We also offer information on some of the best student accommodation investment opportunities currently available at RWinvest, with rental yields of up to 8%. Scroll down to read more.

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What Is Student Accommodation Investment?

Before asking yourself whether buying student accommodation investment properties is a good purchase, you need to understand the basics. So what exactly is student property investment? And what does student accommodation mean?

Student accommodation is a property that provides a living solution for students – typically those studying for a university degree.

Commonly known as student property investment, student accommodation as an investment refers to purchasing and owning a property for the purpose of letting it out to tenants and generating income through rental payments.

Student on campus with mask and hand sanitizer Student on campus with mask and hand sanitizer

Student Property Investment During Covid-19 

Ever since the beginning of the Covid-19 pandemic back in March 2020, many aspects of everyday life have changed.

The property industry is one area that experienced some changes. During the first national lockdown, there was a ban on in-person viewings, which caused a rise in ‘virtual viewings’ fuelled by technology.

Unsurprisingly, the Covid-19 pandemic caused a lot of people to question the potential behind property investment during this time.

Buy to let student accommodation is an area that came under scrutiny during the pandemic. With UK universities focusing on remote study throughout the coronavirus pandemic, many investors have felt cautious of investing in student property – the assumption being that fewer students will be looking to rent accommodation during this time.

Manchester University Allen Gilbert building Manchester University Allen Gilbert building

This caution is understandable, but according to recent research, 2020 actually saw a rise in interest levels for student property.

An online student property portal, AccommodationForStudents, saw a 25% increase in the number of students searching online for student accommodation in June 2020 compared to June 2019.

Recent data from UCAS also reveals a 9.6% uplift in applications from students outside of the EU, and an overall rise in applications from those looking to study in the 2020/21 academic year.

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Shaw Street

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Completed & 100% Tenanted

The Bridewell

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Liverpool Prices from £74,995

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How Has Student Property Investment Changed Over the Years? 

Like other aspects of the property investment market, student property investment is an asset that’s seen some changes over the years. So what have been some of the key things to happen to the student accommodation market in the UK over recent years?

Here is a timeline of important information and statistics on the UK student property market between 2013 and 2020.

2013

A report by the National Union of Students (NUS) finds that student spending supports over £80 billion worth of the UK’s economic output. This can be compared to around a third of the entire aviator sector in the UK.

Independent.co.uk

2014

Due to high student numbers and a 10% rise in student accommodation demand, the BBC reports that many universities are unable to house all of their first-year students in halls of residence.

Bbc.co.uk

2015

Students continue to face an accommodation shortage as demand outstrips supply in many UK cities, including Oxford, Leeds, and Birmingham. Data from SpareRoom reveals that up to 22 people compete for each available room in university towns and cities.

Propertyreporter.co.uk

2016

26% of Liverpool-based property investors consider an investment in student accommodation as a way to help cater to the city’s student population of 50,000. Investors in Liverpool are reportedly 10% more likely to plough funds into student property than the average UK investor.

Propertyinvestortoday.co.uk

2017

An analysis from Savills reveals that levels of investment in student property are set to reach £5.3 billion by the end of 2017. This shows that investment demand has increased by 17% since 2016. Savills also saw £2.1 billion in transactions for UK student property following the EU referendum, compared to £1.9 billion in the previous year.

Propertyreporter.co.uk

 

2018

Figures from UCAS record a rise in UK university applications from EU students. A total of 43,500 EU students applied for undergraduate places in 2018, showing a 3% rise compared to 2017.

Theguardian.com

 

2019

According to a study by the National Union of Students, it was found that out of every ten students in the UK, four of these deemed their accommodation as ‘substandard’. Many of the issues students encountered revolved around the property itself, with 42% of students reporting damp and insulation problems and 16% experiencing electrical issues. This fuelled further demand for high-quality, purpose-built student accommodation.

Nus.org.uk

 

2020

UK university applications rise to record levels. Applications from 18-year-olds rose by 40.5% in 2020 compared to 38.9% in 2019. The number of applications from those outside of the EU also increased by 10%.

Topuniversities.com

Invest with RWinvest Today

With over 17 years of student buy to let experience and a talented team of student property investment experts, we’re passionate about encouraging more people to take advantage of the fantastic opportunities available with student accommodation investment.

Amy Jackson, RWinvest

Is Student Property a Good Investment? 

So, we know about the benefits of certain student accommodation types, and we know about some of the most recent student property market trends over the last seven years, but the question still remains – is student accommodation a good investment?

If you’re questioning whether you should invest in student property or opt for an alternative method of buy to let, take a look at the following pros and cons of investing in student property.

Pros of Student Property Investment 

1. High Demand for Student Accommodation in the UK 

For a buy to let venture to succeed, there needs to be a lot of demand for the property as this ensures a consistent rental income is generated. In the UK, student investment properties are in high demand due to large student populations.

Attending higher education is now much more popular than it has been in the past, and more and more people are choosing to apply for a university course in the UK.

Map of Asia of countries with most International student in UK Map of Asia of countries with most International student in UK

In 2018 and 2019, student numbers reportedly rose by 2%, according to Higher Education Student Statistics.

Even in 2020, when many property investors questioned the success of student property investment during the Covid-19 pandemic, data released from UCAS showed a record number of university applications for the academic year of 2020/21.

Out of the UK’s growing student numbers, many of those choosing to study in UK universities are from overseas countries.

In 2016/17, the UK welcomed around 450,000 students, creating multiple new student accommodation investment opportunities. Students from China, Hong Kong, India, Malaysia, and the US make up 38% of enrolment within universities in the UK.

With the UK boasting a reputation as the second most popular study destination in the world, it’s easy to understand why UK student property investment is such a popular option.

Invest From £35,000

ELEMENT - The Quarter

North West's First Eco-Development

Liverpool Prices from £74,950

8% NET Rental Return

300m Away From New £1bn Royal Hospital

Invest From £30,000

Shaw Street

Completed Student Accommodation

Liverpool Prices from £69,995

8% NET Rental Returns

Completed Student Accommodation

Completed & 100% Tenanted

The Bridewell

Historic Victorian Building

Liverpool Prices from £74,995

8% Assured NET Rental Return

100% Tenanted

Student halls with bike shed and students Student halls with bike shed and students

2. High Rental Yields Available 

Like rental demand, rental returns are a major factor of any investment. After all, without making a return on your investment, what are you getting out of the venture?

One of the reasons why so many are attracted to student property investment in the UK is because rental yields are typically high.

Rental yields are calculated by dividing 12-months worth of rental income by the price of the property and then multiplying this figure by 100 to get a percentage.

Because student flats tend to come with low prices but high rental costs, student accommodation investment comes with some fantastic potential yields.

The likelihood of generating high yields increases even more when purchasing property in top buy to let cities. Find out more about this in our section on the best places to invest in student accommodation.

Student tenants in halls Student tenants in halls

3. Students Are a Desirable Tenant Group 

Students are often considered the best tenant group to rent to by many property investors, which is a major bonus of investing in student property.

There are a number of reasons for this. Because student tenants will often have a guarantor in the form of a parent or guardian, rental payments will likely continue to be met even if the tenant themselves can’t afford to meet costs.

Since student tenants are often living away from home for the first time, they’ll usually treat their landlord respectfully and avoid any issues.

The perception of student tenants as being reckless with security or causing damage to properties is now outdated.

Today’s students are a lot more security savvy, seeking private student apartments with CCTV, and making sure to stick to tenancy rules.

Many young people also take a lot of pride in their homes, particularly since staying at home has become the norm. This means that they are likely to stay on top of cleaning.

Manchester Media City student accommodation Manchester Media City student accommodation

4. High Capital Growth Is Available in Top UK Cities

Along with demand and rental yields, capital appreciation is another big part of buy to let investment strategies.

Capital growth ensures that your property sells for a higher price when exiting the investment, offering you attractive potential returns.

The good news is that student property investment is capable of bringing in some fantastic capital growth rates. At the end of 2019, the UK student accommodation sector was worth around £53.2 billion – a 72% rise in value since 2014.

UK property prices are also growing rapidly, with predictions for average house prices to increase by 21.1% by 2025. In the North West region, home to popular student areas like Liverpool and Manchester, property prices are predicted to grow by a massive 28.8%.

With the student property market growing in value so rapidly and the student population ever increasing, things are looking bright for the future of student property investment.

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University students having discussion University students having discussion

Cons of Student Property Investment 

While there are some huge benefits to investing in student accommodation, there are also a few downsides like any financial venture. Here are some of the most common reasons that some investors question the potential behind student buy to let.

1. You’re Limited to One Tenant Group 

Part of the beauty of student property investment is that the student market in the UK is thriving, with student accommodation in high demand. The only downside to this is that unlike residential buy to let, student property investment caters to just one tenant group – students.

Those who prefer the freedom to rent to a wide range of tenants, such as young professionals, families, or retirees, will prefer residential property investment rather than student accommodation.

University of Coventry building University of Coventry building

Many investors also believe that student property can be harder to sell when it’s time to exit the investment.

When investing in student accommodation, the type of buyer interested in purchasing your property from you when you exit the venture will likely be another property investor.

With more traditional residential buy to let, investors have the choice of selling their property to both investors and residential homeowners, which can make for a smoother exit process.

While this can be a downside to some, when investing in areas with high capital growth and a lot of investment demand, it’s likely that investors selling their student buy to let property should still find a buyer as easily as they would when selling a residential property, depending on the strength of the market during that time.

Element development in Liverpool Element development in Liverpool

2. Finding a Buy to Let Mortgage Can Sometimes Be Difficult 

Another common reason that some investors may view student buy to let as less of an attractive venture is that securing a buy to let mortgage on a student property can sometimes be more difficult.

Compared to residential buy to let, fewer mortgage lenders will offer a buy to let mortgage to those investing in student accommodation.

While there are certainly ways around this, such as offering a higher deposit than the standard 25%, this can be a significant factor for investors relying on a mortgage to help them pay for the property.

The good news is that one of the benefits of student properties is that they’re a lot more affordable than typical buy to let flats. This makes it more likely that investors can pay for the property outright with cash savings or use a payment plan as agreed with the property company.

Paying for your buy to let purchase through a payment plan or buying the property outright is often considered a much better way to invest in property than using a buy to let mortgage.

This is because you don’t have to worry about keeping on top of mortgage repayments further down the line and can keep your rental income to yourself.

With this in mind, affordable student properties actually make a great investment for those hoping to pay for their venture without a buy to let mortgage!

Invest From £35,000

ELEMENT - The Quarter

North West's First Eco-Development

Liverpool Prices from £74,950

8% NET Rental Return

300m Away From New £1bn Royal Hospital

Invest From £30,000

Shaw Street

Completed Student Accommodation

Liverpool Prices from £69,995

8% NET Rental Returns

Completed Student Accommodation

Completed & 100% Tenanted

The Bridewell

Historic Victorian Building

Liverpool Prices from £74,995

8% Assured NET Rental Return

100% Tenanted

Manchester Oxford Road view towards the university Manchester Oxford Road view towards the university

What’s the Best Location in the UK to Invest in Student Property? 

As with any property investment, the location of your student buy to let investment plays a big part in the venture’s overall success.

Rental yields, demand, and capital appreciation are the most important elements of a student property investment. The kind of yields, capital growth, and tenant demand you can expect, however, will vary depending on the area you invest in.

If you look at predictions for property prices after Brexit, you can see that house price growth in Northern cities is expected to remain strong, while London property prices could be negatively affected.

Thinking into the future is so important with all investments, so this is something you should factor into your student investment.

Three of the best cities to invest in if you’re looking for student accommodation for sale are Liverpool, Manchester, and Leeds.

Here is some information on why these top student cities are considered hotspots for buy to let student accommodation investment in the UK.

Liverpool University and students walking Liverpool University and students walking

Liverpool Student Property Investment: Why Invest in Student Property in Liverpool?

Student Population: Approx 70,000

Average Rental Yield: 6.37%

Predicted Regional House Price Growth: 28.8%

Widely known as a thriving university city, investors who explore Liverpool student accommodation investment opportunities can benefit from plenty of rental demand thanks to a student population of approximately 70,000.

Liverpool boasts a high average rental yield of 6.37% based on Zoopla average house price and rental cost statistics.

However, those investing in student accommodation in Liverpool should definitely delve a little deeper into the best buy to let postcodes in the city to benefit from higher yields.

Liverpool made the Totally Money list of the best buy to let yields in the country, with six postcodes in the city boasting rental yields of over 7%.

The L1 Liverpool postcode was ranked number one on the 25 buy to let areas thanks to potential yields of up to 10%.

Along with rental yields and a high student population, one other reason why Liverpool student accommodation investment is so promising is due to strong capital growth rates.

Property prices have been growing significantly in Liverpool and the North West region, with predictions for the region’s property prices to grow by 28.8% by 2025.

Contemporary student hall towers in Manchester Contemporary student hall towers in Manchester

Manchester Student Property Investment: Why Buy Student Property in Manchester? 

Student Population: Approx 100,000

Average Rental Yield: 6.43%

Capital Growth Predictions: 28.8% (North West)

Manchester is another key city for student investments. Much like Liverpool, this Northern city is known for its student scene, with a population of over 100,000 students across several renowned higher education institutions.

Because of this high demand, those who purchase a buy to let student property in Manchester don’t have to worry about losing income through void periods.

Rental yields in Manchester average around 6.43% as calculated from Zoopla statistics, with some postcodes far surpassing this.

The M6 Manchester postcode presents a great opportunity for student buy to let due to being based in Salford – home to the University of Salford.

Since Manchester is also based in the North West region, Manchester property prices are expected to grow 28.8% by 2025, according to Savills predictions.

Manchester property prices have significantly increased over the years, with UK House Price Index figures showing a 12.12% increase in the last 12 months.

With ongoing regeneration and a thriving student scene, Manchester student property investment makes a great option for your next buy to let venture.

Leeds University Building Leeds University Building

Leeds Student Property Investment: Is Student Accommodation Investment a Good Option in Leeds? 

Student Population: Approx 60,000

Average Rental Yield: 6.32%

Capital Growth Predictions: 28.2% (Yorkshire & the Humber)

Leeds is a UK area which is becoming more popular for its property investment opportunities.

Because Leeds is such a prominent university city and home to a range of top institutions, many people are considering student accommodation investment in Leeds.

Leeds has a student population of around 60,000, similar to other student cities like Nottingham and Newcastle, which have student populations of about 40,000.

While the student population in Leeds is slightly lower than that of Liverpool and Manchester, it’s still a city worth exploring when it comes to student buy to let.

Rental yields in Leeds average out at around 6.32%, while some areas, such as the popular student hotspot, Headingley, generate yields as high as 8.95%.

Rental costs in Yorkshire and the Humber are also shown to be increasing, with an average growth from around £4,000 to almost £6,000 for student accommodation in the region between 2011 – 2018.

Growth is also predicted to be high for Leeds property prices, with predictions for the Yorkshire and the Humber region to see house price growth of 28.2% by 2025.

Next to Liverpool and Manchester, Leeds is one of the top UK cities right now for regeneration, making it a great choice for investors to explore when it comes to long-term capital appreciation.

Part of the beauty of student property investment is that the student market in the UK is thriving, with student accommodation in high demand.

Amy Jackson, RWinvest

FAQs About Buying a Student Investment Property

So you’ve learned about what student property investment means and whether investing in student accommodation is a good opportunity, and read about some of the best areas to find student accommodation investment opportunities.

Now, it’s time to learn answers to some commonly asked questions on student buy to let. In our FAQ section, we cover some of the things you should know before investing in UK student accommodation.

Yes, if you’re a first-time investor, you should definitely explore the opportunities available with student property investment in the UK.

Student accommodation is actually considered a great venture for beginner buy to let investors. Here are some reasons why:

  • Property prices can be considerably lower with student buy to let than with residential property investments. This is great if you’re a first-time investor with a lower budget.
  • Despite low prices, rental yields are high with student property investment. In UK areas like Liverpool, investors can generate some of the highest rental yields in the country by purchasing student accommodation.
  • By generating ongoing rental demand and regular rental returns, you’ll be able to grow your income and build a well-rounded property portfolio more easily.
  • Student buy to let offers a hands-off investment option for those who would rather hire a property management company to take care of day-to-day rental property duties.

Off-plan property is a property that hasn’t been built or completed yet, whereas a refurbishment property is a property that already exists and has been renovated.

There are a number of benefits to buying off-plan student properties instead of a completed refurbishment project:

  • Off-plan student property investments are usually offered at a below-market rate. If you’re looking to get the best price possible for your student accommodation venture, buying an off-plan property could help you get even more for your money.
  • Off-market properties can offer higher capital growth potential, with a good chance of increasing in value before the property is complete.
  • Off-plan student properties are brand-new once completed. This can increase demand and help you attract more tenants.

As with any property investment purchase, there are certain taxes that investors need to know about before considering student property investment in the UK.

Here are some of the most common taxes involved with purchasing buy to let student accommodation in the UK:

Stamp Duty Tax 

Anyone purchasing a second home, such as an investment property, must pay stamp duty tax on properties worth £40,000 and over.

The higher the property price of your student purchase, the more stamp duty tax you will need to pay.

However, from July 2020, a stamp duty holiday was introduced, allowing investors to save money on their stamp duty taxes.

If purchasing a student investment property before June 2021, you could save up to £15,000 in stamp duty tax as a buy to let investor.

Capital Gains Tax 

Another tax that those investing in student buy to let will be required to pay is capital gains tax.

Capital gains tax is a tax made on any profit you generate after selling your property. Therefore, this tax won’t be payable until you exit your investment, but it’s still worth knowing about and preparing for.

Income Tax 

Those who own a rental property in the UK are required to pay income tax. Income tax is a tax paid on the money investors and landlords make through rental returns.

The amount of income tax you pay will depend on how much money you make through rental income. New rules were introduced in 2020, which require basic-rate taxpayers to pay 20% tax on earnings between £12,501 to £50,000 a year.

Those who earn between £50,001 and £150,000 a year in rental income must pay 40% tax, and those who earn above £150,000 will be taxed 45%.

Yes, if you’re an overseas investor, you can and should look into buying a student investment property.

The UK is one of the most popular areas for overseas investment. According to Knight Frank’s research in 2017, 70% of UK student investment came from overseas buyers.

All five of 2016’s biggest student property deals were sold to international investors, with the most significant deal being 25 student buildings across the UK purchased by a Singapore state investment fund.

The UK has a strong process in place for foreign property investments, which can simplify the investment process for overseas buyers.

Overseas investors purchasing a student investment property in the UK will be guided through the process by the property company selling the investment, a solicitor, and a financial advisor if necessary.

This way, foreign investors involved in buy to let student accommodation will understand what’s involved with a UK investment, being offered information on things like taxes and student buy to let mortgages.

If you’re looking to make attractive returns in a thriving market, don’t hesitate to invest in student accommodation in the UK as an overseas buyer.

While student property is definitely a lucrative asset to invest in, investors need to stay vigilant when selecting student accommodation investment opportunities.

Like any investment, there are risks to investing in student property, and these risks are often avoidable by taking the right steps during the research stage.

During your search for a student buy to let property, you will most likely come across different companies selling student accommodation investment opportunities. Before being enticed by low prices and high yields, you should do the following research:

Research the Developer and Property Company 

Researching the company selling the property and the developer creating it is especially important if it is off-plan.

Find out how much experience each company has, what their track record of developments looks like, and read customer reviews.

If the companies lack experience and have a limited track record of completed projects, you may wish to explore alternative opinions in your search for a student investment property for sale.

Research the Student Market in the Area the Property Is Based 

Sometimes properties can be listed with assured rental yields for a set period of time. To make sure you’ll receive a high yield on your investment even after the assured period has ended, research the property market in the area the investment is based in.

If the student investment property is based in a city and postcode that’s known to generate high rental yields, your rental returns will likely remain strong for a long time after the assured rental yield period is over.

By taking these steps, you can avoid making the wrong investment in student buy to let and give yourself the best chance of success.

Yes, if you’re thinking of investing in student accommodation in the UK in 2021, you shouldn’t hesitate to do so.

While many investors have felt weary of investing in property during the Covid-19 pandemic, 2020 actually ended up being one of the best times to invest in buy to let.

As mentioned earlier in our guide to student property investment, 2020 was a record-breaking year for UK university applications, despite the pandemic.

There’s currently a lot of rental demand for student property. With huge discounts available and enticing deals offered by developers, investors can now take advantage of some of the best value student accommodation investment opportunities.

The rental market is also thriving, with annual rental growth excluding London having hit 2.2% by June 2020. An increase in university applications has also meant that more and more people will be looking to rent student property in the coming years.

While 2020 has no doubt been a year of financial strain for many people, the future looks bright for both the residential and student rental market in the UK for 2021.

2021 is an exciting time to invest in student property. Not only are there some fantastic student property investment deals available right now, but the UK property market is set to grow significantly over the coming years.

By 2025, property prices in the UK are predicted to have risen by an average of 21.1%. In the North West, an even higher growth of 28.8% is expected.

If you’re interested in student property investment and thinking of exploring opportunities for a student accommodation investment for sale, then 2021 is the perfect time to do so.

I’m a First-Time Investor - Should I Invest in Student Accommodation?

Yes, if you’re a first-time investor, you should definitely explore the opportunities available with student property investment in the UK.

Student accommodation is actually considered a great venture for beginner buy to let investors. Here are some reasons why:

  • Property prices can be considerably lower with student buy to let than with residential property investments. This is great if you’re a first-time investor with a lower budget.
  • Despite low prices, rental yields are high with student property investment. In UK areas like Liverpool, investors can generate some of the highest rental yields in the country by purchasing student accommodation.
  • By generating ongoing rental demand and regular rental returns, you’ll be able to grow your income and build a well-rounded property portfolio more easily.
  • Student buy to let offers a hands-off investment option for those who would rather hire a property management company to take care of day-to-day rental property duties.

Should I Buy an Off-Plan or Refurbishment Student Property?

Off-plan property is a property that hasn’t been built or completed yet, whereas a refurbishment property is a property that already exists and has been renovated.

There are a number of benefits to buying off-plan student properties instead of a completed refurbishment project:

  • Off-plan student property investments are usually offered at a below-market rate. If you’re looking to get the best price possible for your student accommodation venture, buying an off-plan property could help you get even more for your money.
  • Off-market properties can offer higher capital growth potential, with a good chance of increasing in value before the property is complete.
  • Off-plan student properties are brand-new once completed. This can increase demand and help you attract more tenants.

What Taxes Are Involved With Student Accommodation Investment UK?

As with any property investment purchase, there are certain taxes that investors need to know about before considering student property investment in the UK.

Here are some of the most common taxes involved with purchasing buy to let student accommodation in the UK:

Stamp Duty Tax 

Anyone purchasing a second home, such as an investment property, must pay stamp duty tax on properties worth £40,000 and over.

The higher the property price of your student purchase, the more stamp duty tax you will need to pay.

However, from July 2020, a stamp duty holiday was introduced, allowing investors to save money on their stamp duty taxes.

If purchasing a student investment property before June 2021, you could save up to £15,000 in stamp duty tax as a buy to let investor.

Capital Gains Tax 

Another tax that those investing in student buy to let will be required to pay is capital gains tax.

Capital gains tax is a tax made on any profit you generate after selling your property. Therefore, this tax won’t be payable until you exit your investment, but it’s still worth knowing about and preparing for.

Income Tax 

Those who own a rental property in the UK are required to pay income tax. Income tax is a tax paid on the money investors and landlords make through rental returns.

The amount of income tax you pay will depend on how much money you make through rental income. New rules were introduced in 2020, which require basic-rate taxpayers to pay 20% tax on earnings between £12,501 to £50,000 a year.

Those who earn between £50,001 and £150,000 a year in rental income must pay 40% tax, and those who earn above £150,000 will be taxed 45%.

Can I Buy a UK Student Property if I’m an Overseas Investor?

Yes, if you’re an overseas investor, you can and should look into buying a student investment property.

The UK is one of the most popular areas for overseas investment. According to Knight Frank’s research in 2017, 70% of UK student investment came from overseas buyers.

All five of 2016’s biggest student property deals were sold to international investors, with the most significant deal being 25 student buildings across the UK purchased by a Singapore state investment fund.

The UK has a strong process in place for foreign property investments, which can simplify the investment process for overseas buyers.

Overseas investors purchasing a student investment property in the UK will be guided through the process by the property company selling the investment, a solicitor, and a financial advisor if necessary.

This way, foreign investors involved in buy to let student accommodation will understand what’s involved with a UK investment, being offered information on things like taxes and student buy to let mortgages.

If you’re looking to make attractive returns in a thriving market, don’t hesitate to invest in student accommodation in the UK as an overseas buyer.

What Due Diligence Should I Take Before Purchasing a Buy to Let Student Property?

While student property is definitely a lucrative asset to invest in, investors need to stay vigilant when selecting student accommodation investment opportunities.

Like any investment, there are risks to investing in student property, and these risks are often avoidable by taking the right steps during the research stage.

During your search for a student buy to let property, you will most likely come across different companies selling student accommodation investment opportunities. Before being enticed by low prices and high yields, you should do the following research:

Research the Developer and Property Company 

Researching the company selling the property and the developer creating it is especially important if it is off-plan.

Find out how much experience each company has, what their track record of developments looks like, and read customer reviews.

If the companies lack experience and have a limited track record of completed projects, you may wish to explore alternative opinions in your search for a student investment property for sale.

Research the Student Market in the Area the Property Is Based 

Sometimes properties can be listed with assured rental yields for a set period of time. To make sure you’ll receive a high yield on your investment even after the assured period has ended, research the property market in the area the investment is based in.

If the student investment property is based in a city and postcode that’s known to generate high rental yields, your rental returns will likely remain strong for a long time after the assured rental yield period is over.

By taking these steps, you can avoid making the wrong investment in student buy to let and give yourself the best chance of success.

Is Student Accommodation a Good Investment in 2020 and 2021?

Yes, if you’re thinking of investing in student accommodation in the UK in 2021, you shouldn’t hesitate to do so.

While many investors have felt weary of investing in property during the Covid-19 pandemic, 2020 actually ended up being one of the best times to invest in buy to let.

As mentioned earlier in our guide to student property investment, 2020 was a record-breaking year for UK university applications, despite the pandemic.

There’s currently a lot of rental demand for student property. With huge discounts available and enticing deals offered by developers, investors can now take advantage of some of the best value student accommodation investment opportunities.

The rental market is also thriving, with annual rental growth excluding London having hit 2.2% by June 2020. An increase in university applications has also meant that more and more people will be looking to rent student property in the coming years.

While 2020 has no doubt been a year of financial strain for many people, the future looks bright for both the residential and student rental market in the UK for 2021.

2021 is an exciting time to invest in student property. Not only are there some fantastic student property investment deals available right now, but the UK property market is set to grow significantly over the coming years.

By 2025, property prices in the UK are predicted to have risen by an average of 21.1%. In the North West, an even higher growth of 28.8% is expected.

If you’re interested in student property investment and thinking of exploring opportunities for a student accommodation investment for sale, then 2021 is the perfect time to do so.

Checklist: How to Invest in Student Property Effectively

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Consider the Pros and Cons

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Explore Different Types of Student Accommodation

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Think About What Your Tenant Wants

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Find the Right Location

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Buying Student Property With RWinvest 

RWinvest is proud to specialise in both student and residential UK investment opportunities, with buy to let properties in Liverpool and Manchester.

When thinking about getting involved with student accommodation as an investment, we use our expertise to help you make the most informed decision.

Focusing on rental returns, location, and potential growth, we help our clients secure the most exciting student investments on the market.

Virtual viewing of a RWinvest property on a laptop Virtual viewing of a RWinvest property on a laptop

How Can I Buy Student Accommodation in 2021 With RWinvest? 

If you want to buy student accommodation in 2021, the process is still very simple, even though there are a few minor changes.

In-line with Covid-19 health and safety guidelines, property investors can carry out meetings and property viewings virtually rather than in person.

So what do virtual tours involve? Virtual tours allow investors to view a property without leaving their home, thanks to computer-generated imagery and virtual reality.

Investors can either take a virtual tour using a VR headset if they own their own or use their smartphone, laptop, PC, or smart device.

We’re also utilising video calls for one-on-one meetings with property consultants. For those who are interested in investing in student accommodation in the UK from overseas, this is already a much easier option and limits the need for costly travel.

For investors who are keen to attend in-person meetings or property viewings during the student property investment process, face coverings are recommended, and social distancing rules should be adhered to.

Here at RWinvest, whether you’re interested in investing in buy to let student accommodation or residential property, we’re taking all the necessary steps to keep our investors and staff as safe as possible during the coronavirus pandemic.

Why Explore Student Accommodation Investment Opportunities With RWinvest? 

Here at RWinvest, we’re market leaders in all things property investment.

With a broad portfolio of completed student property investment projects in key UK cities like Liverpool and Manchester and over 17 years of experience in the buy to let field, you can trust us to find you the best student accommodation investment opportunities on the market today.

We understand what it takes to make a lucrative student property investment and work hard to bring our investors buy to let student property developments with the best returns possible.

  • We have a wealth of experience working with both experienced investors and those investing for the first time.
  • Whether you’re based in the UK or internationally, we can provide you with attentive customer care at all times, guiding you through the investment process and keeping you updated on the status of each development.
  • We work with only the very best property development companies on the market for our residential and student investment properties, bringing our clients developments of the highest quality.

Invest From £35,000

ELEMENT - The Quarter

North West's First Eco-Development

Liverpool Prices from £74,950

8% NET Rental Return

300m Away From New £1bn Royal Hospital

Invest From £30,000

Shaw Street

Completed Student Accommodation

Liverpool Prices from £69,995

8% NET Rental Returns

Completed Student Accommodation

Completed & 100% Tenanted

The Bridewell

Historic Victorian Building

Liverpool Prices from £74,995

8% Assured NET Rental Return

100% Tenanted

What Are The Benefits of Student Property Investment Compared to Traditional Residential Buy to Let at RWinvest? 

There are many benefits to student property investment compared to more traditional residential buy to let investments. At RWinvest, we specialise in both student and residential properties and believe that there are huge benefits to both strategies.

One of the main reasons we recommend buying a student investment property to many of our investors is that this investment type offers a winning combination of high tenant demand and attractive yields.

Rental yields for our student properties rarely fall under 7%, with all of our current student accommodation investment opportunities offering rental yields of 8%.

This is less common with residential investment, so if you’re an investor that’s set on generating the highest yields possible, buy to let student property investment is definitely one to consider.

Those with a lower budget will also favour student property investment. Our current student investments start from just £59,995, which is more than half the price of some of our residential properties.

What Is the Latest Student Accommodation Investment Opportunity Currently Available With RWinvest? 

The latest student property investment opportunity for sale with RWinvest is ELEMENT – The Quarter.

Developed by Nexus, ELEMENT – The Quarter is Liverpool’s first-ever eco-development.

Featuring hotel-standard facilities and systems such as rainwater recycling, solar panels, an air source heat system, and more, this development is unmissable for eco-conscious investors and tenants alike.

This student property is targeted at postgraduate students and also serves as a residential investment opportunity.

From just £92,950, investors can purchase a one-of-a-kind postgraduate student investment property that’s set to generate huge levels of demand and gives investors 8% assured rental yields.

As an extra incentive to invest in this property, we’ve teamed up with the non-profit organisation, One Tree Planted, to ensure that for every apartment purchased in ELEMENT – The Quarter, 100 trees are planted in the Amazon rainforest.

Invest with RWinvest Today

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If you’re interested in exploring student property for sale with RWinvest and are ready to take your next step, contact us today to begin your investment journey!

Invest From £35,000

ELEMENT - The Quarter

North West's First Eco-Development

Liverpool Prices from £74,950

8% NET Rental Return

300m Away From New £1bn Royal Hospital

Invest From £30,000

Shaw Street

Completed Student Accommodation

Liverpool Prices from £69,995

8% NET Rental Returns

Completed Student Accommodation

Completed & 100% Tenanted

The Bridewell

Historic Victorian Building

Liverpool Prices from £74,995

8% Assured NET Rental Return

100% Tenanted