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Invest in Student Property
As of 2018, student accommodation is more popular than ever before. The student buy to let market has quickly gained momentum throughout recent years, establishing itself as one of the most promising investment opportunities and a way to secure a lucrative long-term income. By the end of 2017, student property investment in the UK reached £5.3 billion — a big jump from the £3.1 billion invested back in 2016. The purpose-built student accommodation market is already worth £46 billion to the UK economy and expected to grow 17% further by the end of 2018.
The popularity of student property investment has meant that increasing numbers of investors are choosing purpose-built student accommodation for their next venture, resulting in an overall rising interest in the student accommodation investment market. Whether you’re interested in investing in student accommodation in Manchester, Liverpool, or Wirral, read on to find out more about the UK student property market and why you should invest with RW Invest.
Why Choose Student Property?
Before taking the next step toward student accommodation investment, you need to be sure that arguably the most important aspect of any investment is there — the tenants themselves.
The UK student population is rising year on year, with numbers of students in Liverpool and Manchester among some of the highest in the UK. With the UK being home to four of the top ten universities in the world, it’s no surprise that students are taking advantage of the world-class education on offer.
It is not just students from the UK that are contributing to the growth of the country’s student population, with international students annually contributing around £20.3 billion towards the UK economy. Back in 2016/17 we welcomed around 450,000 students to UK universities, and with 91% of international higher education students being satisfied with their university experience, this is a number that’s expected to grow to 600,000 by the end of 2020.
An expanding population means a higher demand for purpose-built student accommodation, which is good news for investors. On average, there are now 3.5 students enrolled per room in the UK, resulting in student tenants eagerly awaiting high-quality accommodation.
Student properties are notoriously popular with investors as they often offer high rental yields and the opportunity for fantastic capital growth. Student accommodation investment opportunities offer the chance to invest in affordable properties in thriving city centre locations, all the while securing guaranteed rental returns.
Purpose-built student accommodation such as the student apartments available at RW Invest have been a hot commodity on the property market in recent years. With more affluent international students moving to the UK, and changing attitudes towards student accommodation, there has been a shift towards more well-designed, luxury properties. These properties feature modern designs, stylish furnishing, spacious rooms and fantastic amenities like high-speed Wi-Fi and communal gardens. Most importantly, these properties offer high student accommodation investment yields due to their low price and high demand.
Due to the demand behind student properties, investors can rest assured that interest levels in their property will always be high. Buy to let student properties also offer the opportunity for long-term tenancy if students decide to rent your property during the entirety of their studies. The influx of international students in the UK is also a promising factor for those interested in student accommodation investment. With students from countries such as China making up the highest percentage of overseas students, the likelihood that tenants will need to leave the city throughout term times is a lot lower than that of UK students.
Why Location Matters
Location is always a major factor when it comes to property. Here at RW Invest, we offer developments in some of the best student buy to let towns in the country. The student population in Liverpool and Manchester is one of the highest in the UK, continuing to grow year on year. With a combined population of around 155,000 students, Manchester and Liverpool make the North West a hotspot for property investment.
It is no surprise that a growing number of investors are looking to buy student accommodation in Manchester. Manchester and Liverpool have both seen a huge rise in international students throughout the years, with overseas student populations ranking within the top ten cities in the world.
With both cities being famous for their prestige universities, rich history and great quality of life, there’s plenty of reasons Liverpool attracts so many students. Boasting a number of reputable institutions such as the University of Liverpool, Liverpool John Moores and Liverpool Hope University, along with Ormskirk’s Edge Hill University just a train ride away, Liverpool is a hub for world-class learning.
While Liverpool has plenty to offer on the educational front, it’s not just the universities, and the wide range of courses that make Liverpool one of the best student buy to let towns. The city also offers fantastic restaurants and nightlife, cultural hotspots, and other amenities for students to enjoy, making it a great idea to buy student accommodation in Liverpool.
Manchester is no different, home to the University of Manchester, the largest single-site University in the country. Other institutions such as Manchester Metropolitan University and the University of Salford offer courses in specialist subjects such as those in the creative fields.
But what gives cities such as Liverpool and Manchester edge when compared to other popular student cities such as London? Affordability is a big factor when comparing London to Liverpool and Manchester. Investors who would normally look to London for their property ventures are moving towards Northern cities for their next investment. According to Zoopla, house prices average around £158,299 in Liverpool compared to £671,412 in the English capital. The cost of living is also significantly cheaper, which likely plays a big part in the increased student populations of these cities.
For private student accommodation in Liverpool, investment opportunities at RW Invest include our Hamilton Hub student accommodation. Located just three minutes from Liverpool city centre, this student investment property is the lowest priced in the UK, from just £45,450 with an 8% net rental return.
Thanks to exciting new developments, fantastic attractions and an active social scene, Liverpool and Manchester are both areas with excellent capital growth, making them perfect cities if you’re looking to invest into the student market.
A Bright Future Ahead
Getting involved with student housing investment isn’t just about the student numbers or universities. Before investing in a property, you need to be sure that the city itself offers good capital gains. Both Liverpool and Manchester are magnets for big regeneration projects, retail and commercial operations, and vastly growing, well-established amounts of overseas investment.
Major developments have been made through the Northern Powerhouse initiative that have greatly improved the quality of life and opportunities available for students in Liverpool and Manchester. Transport For The North, England’s first ever sub-national transport body, launched in 2018 with plans to connect Liverpool to Manchester airport. These plans to improve transport include an enhanced rail network throughout the North, with better frequency and capacity on trains.
The famous Liverpool docks are set to undertake a major revamp under the Liverpool Waters project. This £5.6 billion project will include a number of developments to bring the waterfront into the 21st century, transforming it into a place to live, to invest, and to work.
Many areas around Liverpool that were once disused are experiencing high levels of regeneration. Once a historically industrial area, Liverpool’s Baltic Triangle has had £128 million worth of investments since 2012, with a further £62 million in the pipeline. Today, the Baltic Triangle is one of the most popular areas of the city, home to several hip bars and eateries.
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 rivals Liverpool Football Club are working in conjunction with Liverpool City Council to revamp the area surrounding their famous Anfield stadium.
Other new developments set in place include the emergence of the new Royal College of Physicians. Otherwise known as The Spine, this 14-storey building will feature a state of the art design that rivals major architectural landmarks around the world and will bring plenty of interest and opportunity to the city.
Liverpool isn’t the only student city with regenerative plans in place, as over in Manchester there are several other exciting projects taking shape. Due to launch in 2019, St Johns is a £1 billion city centre neighbourhood development including the construction of 560,000 square feet of workspace, 3,000 homes, 320 hotel rooms and 240,000 square feet of retail space. This is big news for a city that’s already gained a name as one of the biggest cities in the UK for opportunities and housing and will enhance the lives of Manchester residents and students massively.
It is developments like these that mean that the university towns Liverpool and Manchester will continue to grow and welcome more and more students throughout the years, along with improving the economy of the North at a rapid rate.
For investors interested in selling student accommodation in the long term to Liverpool and Manchester’s students, both growing numbers of students and student retention rates are looking promising. 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 increasing even further by growing to 70%.
Here at RW Invest, we are experts in student property investment. With over 14 years’ experience, we have the knowledge and experience required to advise you on your next buy to let student property investment. Operating heavily in Northern cities, we have some fantastic opportunities available for luxury student accommodation in Manchester and Liverpool.
We believe that students deserve the highest quality of living, which is why all of our student properties are luxuriously furnished, well located, and fully equipped with the high-tech facilities needed to meet student’s demands.
Our student accommodation investment opportunities are purpose built and overseen by experienced management companies, providing a hassle-free, hands-off investment opportunity. Our student properties are in areas which are currently benefiting from heightened investment and regeneration.
Still asking yourself “is student accommodation a good investment for me?” Contact us directly and our team will be happy to offer the guidance needed.