Student Property Investment – Should You Invest in UK 2022?

Student Property Investment
Daniel Williams
Daniel Williams
Senior Property Writer
7 Min Read
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    Student Property Investment Student Property Investment

    Thinking of starting your student property investment journey? 

    Then you’ve come to the right place. 

    In this guide you will learn all about student property investment and find out: 

    • What is student property investment? 
    • How do I invest in student property investment? 
    • Finding student accommodation investment opportunities. 
    • The pros and cons of student property investment. 

    This is the first in a series of student property investment UK guides.  

    Throughout this post, you will find links to the rest of our content, which includes the best areas to invest in student property, and if investing in student accommodation is a good idea. 

    Alternatively, click the images below to be taken straight to our other guides. 

    Let’s get started. 

    Student Investment Property For Sale
    Limited Units Remaining
    ELEMENT - The Quarter Exterior ELEMENT - The Quarter Exterior

    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

    Exciting Liverpool Investment
    Shaw Street Exterior Shaw Street Exterior

    Shaw Street

    Completed Student Accommodation

    Liverpool

    Prices from £69,995

    8% NET Rental Returns

    Completed Student Accommodation

    Limited Units Remaining

    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

    Exciting Liverpool Investment

    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 £68,995

    8% Assured NET Rental Return

    100% Tenanted

    Read More About:

    Best Places to Invest in Student Property
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    Best Places to Invest in Student Property


    Student Property Investment Manchester
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    Student Property Investment Manchester


    Student Property Investment Liverpool
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    Student Property Investment Liverpool


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    Student Property Investment Nottingham



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    Student Property Investment Birmingham


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    Student Property Investment Leeds


    How to Invest in Student Property
    View More

    How to Invest in Student Property


    Is Investing in Student Accommodation a Good Idea?
    View More

    Is Investing in Student Accommodation a Good Idea?


    What Is Stamp Duty on Property and Who Pays It?
    View More

    Buy Student Accommodation Investment With RWinvest


    What Is Student Property Investment What Is Student Property Investment

    What Is Student Property Investment? 

    Student property investments are investment properties that have been bought to rent exclusively to student tenants. 

    Traditionally, student property investment referred to HMO’s, otherwise known as houses of multiple occupancy. 

    Now though, the rise of purpose-built student accommodation has seen the student sector explode, with the student property market one of the fastest-growing sectors in the UK. 

    This is because students have changed. They no longer want dingy, lacklustre buy to let student property.  

    Instead, they now want high-quality living experiences provided for by premium student buy to let properties. 

    With a record number of UCAS student applicants in 2020/2021, and a stunning 88% of students living in student accommodation according to the National Student Accommodation Survey, 2022 is one of the best times to invest in student buy to let. 

    If you want to learn more about student investments, and are asking if investing in student accommodation is a good idea, be sure to click the link and read our completely free guide.

    Become a Student Property Expert in Our Complete 2022 Beginners Guide

    Student Property Investment Guide

    Enter Details to Download Now

    How Do I Invest in Student Property Investment

    If you’re asking, “how do I invest in student property investment?” there are currently two main ways. 

    These two methods are by investing in an HMO, or by purchasing student accommodation investment opportunities. 

    We will take a look at both methods below: 

    Houses in multiple occupancies, abbreviated as HMOs, are properties where each room is rented to a different tenant.  

    Tenants usually share amenities, like kitchens and bathrooms, but separately pay rent.  

    Previously the most popular way to invest in student buy to let, HMOs have decreased in popularity for a variety of factors. 

    Firstly, HMOs can be tricky, especially for beginners.   

    With more tenants comes more potential wear and tear and more time spent managing the property.  

    Secondly, HMOs are becoming less common as they are subject to several laws. 

    In fact, many cities are trying to limit the rise of HMO conversions.   

    Pros:  

    • More rental income – As there are more tenants, rent is typically higher, which means higher returns for investors. 
    • Less chance of void periods – With more tenants, if one defaults on a payment, the others will likely be able to pay. 

    Cons:  

    • Strict  legislation – Investors will need licenses to convert HMOs and have extra responsibilities to protect tenants as per The Licensing of Houses in Multiple Occupation Order 2018. 
    • Hard to sell – As HMOs are exclusively investment properties, they will be more difficult to sell as only other investors will be interested. 
    • Less demand – More and more students are opting for higher quality properties that HMOs can no longer provide. 
    • Difficult to secure a mortgage – Student property investors will find it harder to secure mortgages compared to traditional buy to let property. 
    • High maintenance costs – HMOs are typically subject to more wear and tear, with more tenants and older properties.

    Purpose-built student accommodation, or PBSA, is a type of student buy to let property that has been specifically designed for students. 

    This means they usually feature important facilities like high-speed Wi-fi, working spaces, on-site gyms, and building management. 

    PBSA has rapidly increased in recent years, with students now far more likely to opt for higher-quality modern living spaces. 

    This is why PBSA is perfect to cater for the modern student, as it has been exclusively built with their needs in mind. 

    Excitingly for investors, PBSA comes with property management teams, meaning investors can have a completely hands-off investment.  

    We will go into more detail about how to invest in student property in our dedicated guide. So, just click the link to read for free.

    Pros:  

    • More affordable – Student accommodation apartments are generally smaller, so are available at a much more affordable rate. 
    • Higher returns – student accommodation rent can be incredibly high if a development has premium facilities. With high rent and low property, rental yields are generally far higher than normal residential property. 
    • Consistent and predictable tenant cycle – Due to students needing accommodation in the academic year, you will generally see a predictable tenant cycle, so there’s less chance of nasty surprises like long void periods. 
    • It can be a completely hands-off investment – Most student accommodation has its own attached management company, meaning investors will have no landlord duties. 

    Cons:  

    • Less capital appreciation – student property investments generally offer far lower capital growth rates than traditional single buy to let property. 
    • Limited to one tenant group – With purpose-built student accommodation, you will only be renting to students, which limits your tenant pool. 

    What is an HMO?

    Houses in multiple occupancies, abbreviated as HMOs, are properties where each room is rented to a different tenant.  

    Tenants usually share amenities, like kitchens and bathrooms, but separately pay rent.  

    Previously the most popular way to invest in student buy to let, HMOs have decreased in popularity for a variety of factors. 

    Firstly, HMOs can be tricky, especially for beginners.   

    With more tenants comes more potential wear and tear and more time spent managing the property.  

    Secondly, HMOs are becoming less common as they are subject to several laws. 

    In fact, many cities are trying to limit the rise of HMO conversions.   

    Pros:  

    • More rental income – As there are more tenants, rent is typically higher, which means higher returns for investors. 
    • Less chance of void periods – With more tenants, if one defaults on a payment, the others will likely be able to pay. 

    Cons:  

    • Strict  legislation – Investors will need licenses to convert HMOs and have extra responsibilities to protect tenants as per The Licensing of Houses in Multiple Occupation Order 2018. 
    • Hard to sell – As HMOs are exclusively investment properties, they will be more difficult to sell as only other investors will be interested. 
    • Less demand – More and more students are opting for higher quality properties that HMOs can no longer provide. 
    • Difficult to secure a mortgage – Student property investors will find it harder to secure mortgages compared to traditional buy to let property. 
    • High maintenance costs – HMOs are typically subject to more wear and tear, with more tenants and older properties.

    What is a Purpose-Built Student Accommodation?

    Purpose-built student accommodation, or PBSA, is a type of student buy to let property that has been specifically designed for students. 

    This means they usually feature important facilities like high-speed Wi-fi, working spaces, on-site gyms, and building management. 

    PBSA has rapidly increased in recent years, with students now far more likely to opt for higher-quality modern living spaces. 

    This is why PBSA is perfect to cater for the modern student, as it has been exclusively built with their needs in mind. 

    Excitingly for investors, PBSA comes with property management teams, meaning investors can have a completely hands-off investment.  

    We will go into more detail about how to invest in student property in our dedicated guide. So, just click the link to read for free.

    Pros:  

    • More affordable – Student accommodation apartments are generally smaller, so are available at a much more affordable rate. 
    • Higher returns – student accommodation rent can be incredibly high if a development has premium facilities. With high rent and low property, rental yields are generally far higher than normal residential property. 
    • Consistent and predictable tenant cycle – Due to students needing accommodation in the academic year, you will generally see a predictable tenant cycle, so there’s less chance of nasty surprises like long void periods. 
    • It can be a completely hands-off investment – Most student accommodation has its own attached management company, meaning investors will have no landlord duties. 

    Cons:  

    • Less capital appreciation – student property investments generally offer far lower capital growth rates than traditional single buy to let property. 
    • Limited to one tenant group – With purpose-built student accommodation, you will only be renting to students, which limits your tenant pool. 

    Secure Premium Purpose-Built Student Accommodation for Only £74,950 Today 

    View Now
    Best Areas to Invest in Student Property Best Areas to Invest in Student Property

    Best Areas to Invest in Student Property 

    So, where actually should you invest in buy to let student property in the UK? 

    To get the most out of your investments, it’s a good idea to invest in student hotspots that provide the following characteristics: 

    They should have: 

    • A high number of students 
    • Attractive employment opportunities 
    • High-quality universities 
    • Exciting nightlife opportunities 
    • A strong graduate retention rate (the number of students that stay in the city after graduating). 

    In the UK, there are plenty of top investment cities like Manchester and Liverpool to choose from. 

    To help you decide, we have created a list of the top 10 best places to invest in student property.

    If you want to learn more, be sure to click the link to read the guide for free.

    Alternatively, you can find specific guides for both student property investment in Liverpool, and student property investment in Manchester.

    Just click the links for a full in-depth guide for each UK city.

    Liverpool Student Property Investment Liverpool Student Property Investment
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    Student Accommodation Investment Opportunities With RWinvest 

    If you’re interested in buying student accommodation investment, or are looking for the latest student accommodation investment opportunities, then RWinvest is the company for you. 

    RWinvest is an award-winning property investment company specialising in residential and student buy to let properties. 

    With over 17 years of experience and over 1,000 five-star reviews, we are one of the most trusted and accomplished property companies in the UK. 

    Not only have we been crowned the North West’s best property business in 2020, but we were also nominated as Business of the Year 2021. 

    We currently have some of the most exciting student buy to let opportunities in the best areas to invest in property like Liverpool. 

    You can find a buy to let student property from only £69,995, with available NET rental yields up to 8%. 

    If you want to check out our latest available student buy to let, then click the link and see our available choice of student property for sale today.

    Limited Units Remaining

    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

    Exciting Liverpool Investment

    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 £68,995

    8% Assured NET Rental Return

    100% Tenanted

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