Best Areas to Invest in UK Property

The Best Places to Invest in Student Accommodation for 2020

The UK student market has caught the attention of many investors over the years. Thanks to the thriving university scene, flocks of students from across the country and overseas head to different UK cities to pursue their studies. While there are a number of areas in the UK with large student populations, not every city comes with high investment potential for those purchasing student buy to let. This is why it’s so crucial to first research the best places to invest in student accommodation before you get started.

In our guide to the best student accommodation investment areas of 2020, we look at five of the top UK student buy to let cities and explore what makes them stand out. We also think about the benefits of student property investment overall, and why 2020 should be the year you take the plunge to invest in student accommodation. 

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Is Students Accommodation a Good Investment?

As demand continues to rise and the strength of the student property market continues increasing, student accommodation is an investment not to be missed. Many property investors class student accommodation as the best property type due to the higher affordability, stronger yields and constant demand which comes from student buy to let.

In recent years, fewer students are living on standard campus on-site university accommodation and instead choosing to rent high-quality apartments in and around the city centre. These changes in people’s attitudes have led to heightened demand to provide new build developments, and many savvy landlords are taking notice.

Top 5 Areas to Invest in Student Accommodation

Before making an investment in student accommodation, it’s important to know about the top five areas. Here is a breakdown of some of the best places to invest in student accommodation in the UK, looking at student numbers, average yields, and more.

Student Population: 70,000

Average Rental Yield: 5.05%

 

Recognised as one of the UK’s top buy to let hotspots, Liverpool has been hailed one of the best student buy to let areas of 2020, 2019, 2018 and beyond. Liverpool is widely known as a top university city, with a choice of fantastic nightlife, monthly events and things to do and see. It’s no wonder that this city attracts so many students year after year, including those from overseas.

In 2019, the University of Liverpool offered 919 different courses to students, the most of any in the Russell Group University league tables. Of the approximate 35,000 University students that attend the redbrick university, around 8,000 of them are international students, largely thanks to prevalent Chinese ties with a sister school located in Shanghai.

So what about rental yields? Investors from around the globe seek out buy to let opportunities in Liverpool in a bid to take advantage of the city’s high rental yields. With an average yield of 5.05% according to Go Compare, and yields as high as 10% in the L1 postcode, those who choose Liverpool student accommodation investment are in for some attractive returns.

Student Population: 90,000

Average Rental Yield: 5.55%

 

Manchester boasts one of the UK’s most prevalent student scenes. With hit TV shows like Fresh Meat being based in this city, Manchester has developed a reputation as a great place to study in. Aside from its choice of fantastic institutions including the University of Manchester and the University of Salford, Manchester boasts a lively nightlife scene along with some attractive graduate roles in the many high-profile businesses located in the city.

The average rental yield in Manchester stands at 5.55%, which is similar to that of Liverpool but slightly higher. While Manchester property investment postcodes don’t reach as high as L1’s 10%, many parts of Manchester such as the M6 and M3 postcode offer yields as high as 7.89%. If you’re thinking of making a student accommodation purchase in this top Northern hotspot, then be sure to focus on areas like these for the best possible returns.

Student Population: 60,000

Average Rental Yield: 4.29%

 

Another top student city, Leeds is quickly attracting more interest from those looking to buy into the UK student accommodation market. Like Manchester and Liverpool, Leeds is home to some fantastic universities, along with a population of 60,000 students.

With 4.29% average yields, Leeds has less potential for attractive returns than that of Liverpool and Manchester. In certain parts of the city, however, such as Headingley, it’s possible to generate rental yields of up to 7.4%. Since Headingley is one of the best places to invest in student accommodation in the city, it’s evident that student accommodation can come with a higher chance of strong returns when it comes to UK investments

Student Population: 60,000

Average Rental Yield: 4.61%

 

Sheffield is another Yorkshire based city which is becoming more popular as a UK area to invest in student accommodation. With growing universities like the University of Sheffield and Sheffield Hallam, along with affordability, a thriving student and cultural scene, it comes as no surprise that Sheffield boasts a student population of around 60,000.

Sheffield offers a similar level of potential to Leeds for those who wish to invest in student accommodation. The average yield in Sheffield is just slightly higher than that of Leeds, and while 4.61% isn’t too impressive in hindsight, many postcodes in Sheffield come with much more significant yields. The S1 postcode which spans the city centre is a good example of this, offering rental yields of 7.83%. Being one of the best student accommodation areas in Sheffield, those who wish to purchase student buy to let property in Sheffield should definitely explore the city centre.

Student Population: 65,000

Average Rental Yield: 4.46%

 

For investors keen to explore opportunities in the Midlands, Nottingham is one of the best student accommodation hotspots in the region. Those who choose Nottingham over the other popular Midlands investment spot, Birmingham, will be pleasantly surprised by the student market in the city.

Like Liverpool, Manchester, Leeds and Sheffield, Nottingham is another UK city with a famous university scene. What makes Nottingham stand out, however, is the fact that it’s slightly closer to London for a day out, reachable in under two hours. With similar average yields to Sheffield and Leeds according to Go Compare landlord tables, those looking for the best student buy to let areas of 2020 might not immediately consider this city as a strong contender for rental returns. Properties in the city centre of Nottingham, however, are known to generate yields of up to 6%.

Liverpool

Student Population: 70,000

Average Rental Yield: 5.05%

 

Recognised as one of the UK’s top buy to let hotspots, Liverpool has been hailed one of the best student buy to let areas of 2020, 2019, 2018 and beyond. Liverpool is widely known as a top university city, with a choice of fantastic nightlife, monthly events and things to do and see. It’s no wonder that this city attracts so many students year after year, including those from overseas.

In 2019, the University of Liverpool offered 919 different courses to students, the most of any in the Russell Group University league tables. Of the approximate 35,000 University students that attend the redbrick university, around 8,000 of them are international students, largely thanks to prevalent Chinese ties with a sister school located in Shanghai.

So what about rental yields? Investors from around the globe seek out buy to let opportunities in Liverpool in a bid to take advantage of the city’s high rental yields. With an average yield of 5.05% according to Go Compare, and yields as high as 10% in the L1 postcode, those who choose Liverpool student accommodation investment are in for some attractive returns.

Manchester

Student Population: 90,000

Average Rental Yield: 5.55%

 

Manchester boasts one of the UK’s most prevalent student scenes. With hit TV shows like Fresh Meat being based in this city, Manchester has developed a reputation as a great place to study in. Aside from its choice of fantastic institutions including the University of Manchester and the University of Salford, Manchester boasts a lively nightlife scene along with some attractive graduate roles in the many high-profile businesses located in the city.

The average rental yield in Manchester stands at 5.55%, which is similar to that of Liverpool but slightly higher. While Manchester property investment postcodes don’t reach as high as L1’s 10%, many parts of Manchester such as the M6 and M3 postcode offer yields as high as 7.89%. If you’re thinking of making a student accommodation purchase in this top Northern hotspot, then be sure to focus on areas like these for the best possible returns.

Leeds

Student Population: 60,000

Average Rental Yield: 4.29%

 

Another top student city, Leeds is quickly attracting more interest from those looking to buy into the UK student accommodation market. Like Manchester and Liverpool, Leeds is home to some fantastic universities, along with a population of 60,000 students.

With 4.29% average yields, Leeds has less potential for attractive returns than that of Liverpool and Manchester. In certain parts of the city, however, such as Headingley, it’s possible to generate rental yields of up to 7.4%. Since Headingley is one of the best places to invest in student accommodation in the city, it’s evident that student accommodation can come with a higher chance of strong returns when it comes to UK investments

Sheffield

Student Population: 60,000

Average Rental Yield: 4.61%

 

Sheffield is another Yorkshire based city which is becoming more popular as a UK area to invest in student accommodation. With growing universities like the University of Sheffield and Sheffield Hallam, along with affordability, a thriving student and cultural scene, it comes as no surprise that Sheffield boasts a student population of around 60,000.

Sheffield offers a similar level of potential to Leeds for those who wish to invest in student accommodation. The average yield in Sheffield is just slightly higher than that of Leeds, and while 4.61% isn’t too impressive in hindsight, many postcodes in Sheffield come with much more significant yields. The S1 postcode which spans the city centre is a good example of this, offering rental yields of 7.83%. Being one of the best student accommodation areas in Sheffield, those who wish to purchase student buy to let property in Sheffield should definitely explore the city centre.

Nottingham

Student Population: 65,000

Average Rental Yield: 4.46%

 

For investors keen to explore opportunities in the Midlands, Nottingham is one of the best student accommodation hotspots in the region. Those who choose Nottingham over the other popular Midlands investment spot, Birmingham, will be pleasantly surprised by the student market in the city.

Like Liverpool, Manchester, Leeds and Sheffield, Nottingham is another UK city with a famous university scene. What makes Nottingham stand out, however, is the fact that it’s slightly closer to London for a day out, reachable in under two hours. With similar average yields to Sheffield and Leeds according to Go Compare landlord tables, those looking for the best student buy to let areas of 2020 might not immediately consider this city as a strong contender for rental returns. Properties in the city centre of Nottingham, however, are known to generate yields of up to 6%.

What About London?

London is certainly another city attracting high numbers of students from around the globe, thanks to prestigious institutions like Imperial College London, Central Saint Martins, Kings College London, and more. However, when it comes to buy to let potential, London doesn’t have a lot to offer for those who wish to invest in student accommodation.

London is home to some of the worst rental yields in the country, which is down to the huge price tags that come with purchasing property in the capital. It is estimated that the average buyer of a London property will need to pay upwards of £100,000 just for their mortgage deposit alone.

To put things into perspective, let’s compare rental yields in five Liverpool postcodes to five postcodes in London which are often popular with students.

 

Liverpool Vs London Yields: Which Offers the Best Student Accommodation Opportunities?

As you can see, the Liverpool student hotspots are significantly higher than those in London. While the SE28 postcode of London, home to the Greenwich area, does offer higher yields of 5%, this is still less than what investors can benefit from in Liverpool.

 

Which City is the Best for Student Accommodation Investment?

If high yields and strong demand are your main reasons behind investing in student property, then Liverpool and Manchester are definitely some of the key cities to focus on. With the highest student population of around 160,000 combined and some of the top rental yields in the country, these two North West cities have rightfully earned the top spot as the best places to invest in student accommodation.

 

What are the Best Student Areas in Liverpool and Manchester?

While the figures suggest that Liverpool and Manchester are the best student cities UK investors should focus on when searching for a student property purchase, there’s still the question of the best student areas Liverpool and Manchester have to offer. Like residential buy to let investment types, Liverpool student lets and Manchester student investments tend to be found in highly populated parts of the city. In most cases, this means the city centre, particularly since students favour being near their university campus along with local attractions and nightlife.

For Liverpool student lets, the best postcodes tend to be L1, L6 and L2. Not only are these postcodes considered some of the best Liverpool student accommodation investment hotspots for tenant demand, but they also generate high yields and capital growth returns for investors. Manchester, which is considered the best student city in the UK by many investors, also boasts some strong postcode areas for those who want to maximise returns. M3, for instance, in the city centre, is known to generate high rental yields while also being one of the best student accommodation areas in the city. For students attending the University of Salford, postcodes like M5 and M6 occupy the area and make a good option for those looking to find a student accommodation investment for sale.

Invest in the Best Student Buy to Let Areas 2020 With RWinvest

If you’re considering taking the first step to invest in student accommodation, don’t miss our range of opportunities. We currently have a number of great student buy to let properties in Liverpool to choose from, offering yields of up to 8%.

If you want to recieve large returns and attract plenty of demand, contact us today, and we can help you find the ideal student accommodation investment for sale. With properties in some of the best student cities, UK investors are able to build an attractive portfolio and increase their earning potential with the best student accommodation opportunities on the market.

If you’ve enjoyed our guide to finding the best student city in the UK and you want to read more content on the UK property market, check out our buy to let news page.

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