- Prices from £45,450
- 8% Net Rental Return
- Lowest Priced Property Investment in the UK
Invest in Student Property
There has never been a better time to become involved in student accommodation investment. Student property investment is the most secure and profitable means of buy to let investment, the most robust of asset classes. Whether you are an experienced investor or looking to make your first forays into purpose built student accommodation (PBSA), there are more than enough reasons to take the plunge into this most interesting, secure and lucrative of markets.
There are student accommodation investment opportunities just waiting to present themselves to a discerning investor across the UK. There are plenty of reasons why it is not just an excellent investment for the present, but a fantastic and generous long-term investment prospect. Whether it’s in the favourable entry costs and high yields, desirable locations and cities that are growing exponentially, the growing demands of potential tenants or the gratifying projections for the future, there is no reason why you shouldn’t be looking at student property investment as your next great venture.
Student Accommodation Investment
Student property investment is the jewel in the crown of all forms of buy to let property investment in the UK. British bricks and mortar are already regarded as one of the most stable asset classes the world over, and student property investment is front and centre of this profitable economic juggernaut.
There is a sizeable amount of money already swirling around the student property investment market in the UK. By the end of 2017, student accommodation investment in the UK had reached £5.3bn. This was a massive leap from the £3.1bn invested over 2016 with 568,000 available purpose built bed spaces. That figure is already more than double the levels of student property investment seen across 2013 and 2014. Currently, the PBSA market is worth a total of £46bn to the UK economy. The good news for investors, already involved or planning to invest, is that there is only room for growth and prosperity. Student property investment is expected to grow 17% by the end of 2018.
The greatest strength in student property investment lies within its low prices and high yields. That is no more evident than in the North West of England, where the Northern Powerhouse cities of Liverpool and Manchester have positioned themselves as the gold-lined Silk Road of student accommodation investment.
High yields are PBSA’s greatest asset. With the right investment, a landlord can achieve the perfect combination of low costs and high returns, with the average weekly rent of a room currently standing at £126. Student accommodation investment in and Manchester offer incredible yields for prices lower than most other parts of the UK. Three areas in Liverpool, replete with a high student population, pull in some of the highest yields in the country for the lowest prices.
The L7 postcode, accounting for Kensington, Fairfield and Edge Hill, offers an incredible average rental yield of 11.79%. The average L7 house price of £118,225 is considerably lower than other areas that comprise the top ten including Edinburgh, Manchester, Blackpool and Preston. Similarly, the L6 postcode, covering Anfield, parts of the city centre and Everton, offers a fantastic average yield of 11.52% and an even-lower average house price of £108,940.
A total of £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.
Two postcodes in Manchester also offer incredible prices and yields in areas popular with students and are ripe for student property investment. M19, covering Levenshulme, Burnage, Heaton Mersey, Heaton Chapel and Reddish, has an average house price of £185,645. The area pulls in an average yield of 8.6%.
Over in M14, covering Fallowfield, Moss Side, Ladybarn, Rusholme and Longsight, there are even more significant indicators of successful student property investment. The area offers even better figures for student accommodation investment. With the average house price at £194,733 and the average rental yield hitting a fantastic 10.08%.
Buy to let investors looking to make a student property investment will enjoy the fact that demand exceeds supply significantly. Across the UK, there are now 3.5 students enrolled for each room available. Such a trend is prevalent in Liverpool and Manchester, with high end luxury student developments eagerly awaited by potential tenants. New developments are snapped up and leased out as soon as they are ready.
That is because the demands and expectations of student accommodation have changed so much in recent years. The ever-increasing student bodies of higher education institutes in cities like Liverpool and Manchester want more for their money. University-owned accommodation, the traditional dorms and halls, cannot possibly keep up. Students prize accommodation that offers modern, luxury, high tech facilities that just cannot be provided by anybody else but student property investment companies. A current student accommodation investment will now look to offer such conveniences as gyms, cinema rooms, on-site eating and drinking establishments and broadband connections.
With universities unable to meet such demands at a cost they deem suitable or can afford, it’s up to the private sector and those willing and wanting to make a student accommodation investment to step in. More than 70% of students seek out and live in privately owned accommodation during their studies. An intriguing combination of high demand and low supply means investors who make moves into the student property investment market can reap the benefits. That high demand, along with low starting prices and the high rental yields, means investors will be making money off the back of the public sector’s hesitation.
Why You Should Make A Student Property Investment
Good yields and low prices are indeed a blessing for student property investment but what good are they without the numbers to back it up?
Student numbers in Liverpool and Manchester are some of the highest in the UK and growing year-on-year. Liverpool attracts a high number of students to enrol in its many, reputable higher education institutions. Just under 70,000 students perform their studies in the city and its surrounding areas. For its education and future career prospects alone, Liverpool is a desirable proposition for students. The University of Liverpool is ranked as one of the top 1% of higher education institutions in the world, while its contemporaries, Liverpool John Moores University and Liverpool Hope University are both ranked within the top 75 places.
The four major universities of Manchester lay claim to over 85,000 students. The University of Manchester is the largest single-site university in the UK and also has the largest student community in the country. The University of Manchester, like the University of Liverpool, also falls within the top 1% of higher education institutions in the world.
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.
Manchester has not only seen its student numbers swell exponentially, but it is already starting to reap the benefits of high student retention. A more substantial proportion of Manchester’s undergraduate and postgraduate students are staying in the region after they graduate.
In 2014/15, Manchester boasted a 51.5% student retention rate, the second highest in the UK after London and beating other popular cities and institutions such as Belfast (50%), Birmingham (49%) and Edinburgh (42%). Early estimates for 2018 show that figure rocketing to 70%.
Liverpool and Manchester have been quick off the mark in taking advantage of the globalisation of higher education. With British universities being famous worldwide for their history, results and prestige, both North West cities attract large numbers of overseas students.
A quarter of the University of Liverpool’s enrolled students are international. The University of Manchester is not far behind, with just under 20% of its student body being made up of overseas undergraduates and postgraduates.
Increased demand domestically is accentuated by growing numbers of overseas students making their way to the UK’s universities. Despite fears and uncertainty brought about by Brexit, applications to UK universities from prospective foreign students has increased by 2.2% since 2016. The high regard that the UK’s universities are held in should weather any Brexit storm, and such good reputations will keep on attracting overseas students.
A Bright Future For Student Accommodation Investment
Taking a step into student property investment in Liverpool and Manchester is not just about the universities or student numbers themselves. Both Northern Powerhouse cities are magnets for large regeneration projects, vast commercial and retail operations, and well-established and vastly growing amounts of overseas investment.
A great deal of renewed interested from international markets in student property investment comes from the Far East. Nations such as Singapore and China are investing heavily and readily in the student property investment booms taking place in Liverpool and Manchester.
Chinese interest in buy to let properties has increased in 2018. Enquiries from investors into Manchester’s property market has risen by 250% across 2018. Liverpool has seen a massive 160% increase in queries from Chinese parties interested in property investment over the past eight months. By comparison, similar enquiries made over the same period regarding properties in London were down by nearly half. Manchester and Liverpool are the second and third most popular cities respectively for Chinese buy to let property investors.
Liverpool and Manchester are extremely attractive propositions to both domestic and overseas students, making it a prime location for student accommodation investment.
Both cities are amid extensive, multiple regeneration projects that are shaping both the present and future of Liverpool and Manchester while maintaining the rich, storied history of both.
Liverpool Waters is one of the most ambitious regenerative undertakings in UK history. The £5bn project will completely revamp the function and purpose of Liverpool in the 21st century. Alongside that is the construction of Everton Football Club’s new Bramley-Moore Dock stadium. A capacity of 55,000 will ensure a constant stream of people and growth to the once neglected and disused area. Similarly, Everton’s sporting rivals Liverpool Football Club are working in conjunction with Liverpool City Council to revamp the area surrounding their famous Anfield stadium.
Over in Manchester ambitious regeneration projects are taking shape. The St John’s development will be a welcome addition to Manchester’s already bustling city centre. Due to open at the end of 2019, the £1bn development will see the construction of 3,000 homes, 320 hotel rooms, 560,000 square feet of workspace and 240,000 square feet of retail space. Quay Street, the former home of ITV Granada before their move to MediaCityUK, will be the epicentre of this regenerative quake. Current plans have the development spreading out as far the Museum of Science and Industry and the Marriott Hotel on Water Street. St John’s will be situated next to Spinningfields, the luxury development that has quickly become a leading business quarter in the UK.
Here at RW Invest, we are experts in student accommodation investment. Our years of finely-honed knowledge and experience make us specialists in buy to let student property investment. We believe that students need the highest standard of living.
All of 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 accommodation investment properties we sell are purpose built and managed by experienced management companies. 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. Alternatively, you can contact RW Invest 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.