The Best Places to Invest in Student Accommodation for 2020 and 2021

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 and 2021, we look at 11 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 now should be the time you take the plunge to invest in student accommodation.

 

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Is Student Accommodation a Good Investment?

So, is student accommodation a good investment in the UK? Why invest in student accommodation over residential buy to let? 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 the UK student buy to let market.

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 11 Areas to Invest in Student Accommodation

Before making an investment in student accommodation, it’s important to know about the top 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: 5.48%

Average Property Price: £183,569

Predicted Regional House Price Growth: 27.3%

 

Recognised as one of the UK’s top buy to let hotspots, Liverpool had 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 around 5.48% according to Zoopla data, and yields as high as 10% in the L1 postcode, those who choose Liverpool student accommodation investment are in for some attractive returns.

 

Why Make a Student Accommodation Investment in Liverpool?

  • Liverpool boasts some of the highest rental yields in the country.
  • Liverpool has a huge student population which is growing every year.
  • Liverpool is known as one of the best UK cities for nightlife, culture, and affordability.
  • Investors can take advantage of affordable property prices and fantastic capital growth rates, with significant property price growth expected in the coming years.

Student Population: 90,000

Average Rental Yield: 5.16%

Average Property Price: £258,658

Predicted Regional House Price Growth: 27.3%

 

Manchester boasts one of the UK’s most prevalent student scenes. Thanks to hit TV shows like Channel 4’s Fresh Meat being based in this city, Manchester has developed a reputation as a great place to study. 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 around 5.16%, which is similar to that of Liverpool but slightly lower. 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%.

Capital growth prospects are also very high for the Manchester housing market, with an expected growth of 27.3% by 2024 for the North West. If you’re thinking of making a student accommodation purchase in this top Northern hotspot, then be sure to focus on investments in the Salford area and city centre locations for the best possible returns.

Why Make a Student Accommodation Investment in Manchester?

  • The Manchester student scene is thriving, welcoming high numbers of students to its growing population year after year.
  • Potential rental income is high in certain Manchester areas.
  • Manchester is a great city to invest in if you’re looking for investment opportunities with strong capital growth.
  • Manchester is home to some of the UK’s top universities.

Student Population: 60,000

Average Rental Yield: 5.12%

Average Property Price:  £265,293

Predicted Regional House Price Growth: 24.1%

 

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, the higher yields available in this area suggest that student accommodation investment offers some of the best rental yields of any buy to let strategy.

 

Why Make a Student Accommodation Investment in Leeds?

  • Leeds has high rental return potential, with average yields of over 5%.
  • Regional property price growth in the Yorkshire & the Humber region exceeds the expected UK average of 20.4%.
  • Student numbers in Leeds are higher than in many other UK areas, ensuring high demand.

Student Population: 60,000

Average Rental Yield: 4.99%

Average Property Price: £200,064

Predicted Regional House Price Growth: 24.1%

 

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 4.99% 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%. With S1 being one of the best student accommodation areas in Sheffield, this goes to show that those who wish to purchase student buy to let property in Sheffield should definitely explore city-centre locations for the best rental returns.

Why Make a Student Accommodation Investment in Sheffield?

  • Sheffield boasts similarly high student numbers as Leeds.
  • Average property prices in Sheffield are relatively low, and average rental yields show a lot of potential.
  • Regional property price growth sets Sheffield apart from selected other UK regions.

Student Population: 65,000

Average Rental Yield: 4.55%

Average Property Price: £260,563

Predicted Regional House Price Growth: 22.6%

 

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 cities like Sheffield and Newcastle, however, those looking for the best student buy to let areas of 2020 and 2021 might not immediately consider this city as a strong contender for rental returns.

 

Why Make a Student Accommodation Investment in Nottingham?

  • A reputation as a vibrant student city, with a high student population.
  • High potential rental yields, although not as high as those found in other cities.

Student Population: 80,000

Average Rental Yield: 3.79%

Average Property Price:  £264,192

Predicted Regional House Price Growth: 22.3%

 

Cardiff is another UK city that is known for its student scene, and PBSA in the Welsh capital is considered a profitable venture due to a number of reasons. Cardiff itself is a city that’s seeing a high level of regeneration. With trendy new bars and restaurants popping up across the city, and huge past projects such as Cardiff Bay, it’s easy to see why many property developers are introducing new property developments in the city.

While the average rental yield in Cardiff is a little lower than some of the other cities in this list of where to buy student accommodation in the UK, the high student population and strong capital growth prospects make this city stand out as a great place to invest in student accommodation. However, property prices are on the higher side compared to those in more affordable areas like Liverpool, so investors looking to get the best deals may want to look elsewhere.

Why Make a Student Accommodation Investment in Cardiff?

  • Cardiff has one of the highest UK student populations, ensuring consistent demand.
  • Cardiff is a thriving regeneration city, with a lot of investment interest.
  • Student housing in Cardiff may see some level of property price growth, although not as high as the growth expected in other areas.

Student Population: 80,000

Average Rental Yield: 4.12%

Average Property Price: £246,844

Predicted House Price Growth: 21.7%

 

Located right in the center of the country, Birmingham is a top student city, boasting a large student population and a high-ranking university, the University of Birmingham. Birmingham offers great nightlife and a lively cultural scene for students to enjoy, along with an array of annual festivals such as the Birmingham Comedy Festival.

Again, however, Birmingham may not be the best city to invest in if you’re after low property prices, with an average of around £246,844 according to Zoopla asking prices. Investors who invest in purpose-built student accommodation in Birmingham may not end up with the highest possible rental returns, either, with a lower rental yield average than can be found elsewhere.

Still, if you’re set on a Midlands-based student investment, and you want to ensure a high level of rental demand, investing in student accommodation in Birmingham could be a good option.

 

Why Make a Student Accommodation Investment in Birmingham?

  • Birmingham has a large student population thanks to great universities and a strong cultural and nightlife scene.
  • Rental returns and capital growth in Birmingham is relatively high compared to cities in the South of England.

Student Population: 42,000

Average Rental Yield: 5.47%

Average Property Price: £198,932

Predicted House Price Growth: 21.7%

 

Home of the Geordies, Newcastle is the largest city in North-East England and deserves a feature in any guide to the best place to invest in student accommodation. Average student population statistics found online hint that the number of students living in Newcastle may be lower than other student cities. However, with high average rental yields and affordable property prices, Newcastle is still a city worth exploring for its student accommodation investment potential.

Newcastle, like many other student cities in the UK, has built a reputation as a great city for a night out. In fact, in a 2019 guide to the best UK universities for nightlife, Newcastle comes in third after Liverpool John Moores University and the University of Liverpool. This, combined with the high-class learning on offer, ensures a high level of demand for purpose-built student accommodation.

Since Newcastle’s predicted regional property price growth is on the lower side, however, property investors that are set on capital appreciation should expect minimal growth in Newcastle compared to the growth they can find in the North West or other regions.

 

Why Make a Student Accommodation Investment in Newcastle?

  • Low property prices make Newcastle a great choice for investors seeking an affordable spot to invest in student accommodation.
  • Rental yields in Newcastle have a high average, suggesting attractive rental returns, although capital growth returns may be limited.

Student Population: 34,275

Average Rental Yield: 4.05%

Average Property Price:  £332,102

Predicted House Price Growth: 25.4%

 

The Scottish capital of Edinburgh is a hotspot for student investment in the UK. The University of Edinburgh is one of the most prestigious universities in the UK, and even ranked 20th place for the best worldwide universities back in 2019. Student numbers in Edinburgh appear to be lower than the student population in Liverpool and Manchester according to Google search results, however, this doesn’t change the fact that Edinburgh remains a thriving student city.

Many students are drawn to Edinburgh not only for the higher education opportunities available, but also the world-famous cultural scene. However, as far as investment prospects go, rental returns may be on the lower side based on the city’s average rental yield percentage.

The city also has a current average asking price of £332,102 according to Zoopla, making it a miss for anyone who wants to invest in UK student property on a budget. Capital growth, on the other hand, is strong for Scotland, with the second highest predicted growth rate next to Liverpool.

 

Why Make a Student Accommodation Investment in Edinburgh?

  • Edinburgh welcomes university students from around the globe due to its prestigious reputation.
  • Predicted house price growth in Scotland is the second-highest in the UK.

Student Population: 21,009

Average Rental Yield: 4.9%

Average Property Price: £476,445

Predicted Regional House Price Growth: 17.3%

 

If you’re keen on investing in property in the South of England, Brighton is a student city that should be on your radar. Brighton has a reputation as a great university city, especially for those studying for more creative degrees. This seaside town is also known for its large LGBTQ community and forward-thinking attitude.

International students make up 27% of the student population in Brighton, and while student numbers appear on the low side according to Google findings, average net yields of 4.9% make Brighton student accommodation investment opportunities a lot more promising than those in other Southern areas of the UK. On the other hand, regional projected capital growth is at the second-lowest rate next to London, and high average property prices of £476,445 make UK student property investments in Brighton out of reach for many investors.

 

Why Make a Student Accommodation Investment in Brighton?

  • Brighton is a good choice for investors who want to invest in student property in the South.
  • Brighton boasts a high population of overseas students.
  • While capital growth is expected to be low over the coming years, it is still higher than the growth predicted for London.

Student Population: Unknown

Average Rental Yield: 4.17%

Average Property Price: £331,938

Predicted Regional House Price Growth: 17.3%

 

Slough is an area that’s gaining more attention for its buy to let market, including its student property market. Once seen as a run down Berkshire town, Slough property investment has not always been an obvious choice. Today, however, the areas booming economy and ongoing regeneration have helped to increase interest in the area. Slough is also a top student city for those looking to learn in the South East region.

Just a short train ride to London, and students living in Slough can enjoy the choice of universities available in the capital. Compared to renting in London, Slough property is a lot more affordable and so living in this town during studies is a popular choice for many students. Average rental yields available in Slough are just below those of Brighton, but still offer an attractive prospect.

Be sure to read our brand-new Slough property market report for a deep dive into the Slough market in 2021 and beyond.

 

Why Make a Student Accommodation Investment in Slough?

  • Slough offers attractive future capital growth within the South East region.
  • Slough is a regeneration hotspot and boasts a booming economy.
  • The town is an ideal base for students attending universities in London.

1. Liverpool

Student Population: 70,000

Average Rental Yield: 5.48%

Average Property Price: £183,569

Predicted Regional House Price Growth: 27.3%

 

Recognised as one of the UK’s top buy to let hotspots, Liverpool had 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 around 5.48% according to Zoopla data, and yields as high as 10% in the L1 postcode, those who choose Liverpool student accommodation investment are in for some attractive returns.

 

Why Make a Student Accommodation Investment in Liverpool?

  • Liverpool boasts some of the highest rental yields in the country.
  • Liverpool has a huge student population which is growing every year.
  • Liverpool is known as one of the best UK cities for nightlife, culture, and affordability.
  • Investors can take advantage of affordable property prices and fantastic capital growth rates, with significant property price growth expected in the coming years.

2. Manchester

Student Population: 90,000

Average Rental Yield: 5.16%

Average Property Price: £258,658

Predicted Regional House Price Growth: 27.3%

 

Manchester boasts one of the UK’s most prevalent student scenes. Thanks to hit TV shows like Channel 4’s Fresh Meat being based in this city, Manchester has developed a reputation as a great place to study. 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 around 5.16%, which is similar to that of Liverpool but slightly lower. 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%.

Capital growth prospects are also very high for the Manchester housing market, with an expected growth of 27.3% by 2024 for the North West. If you’re thinking of making a student accommodation purchase in this top Northern hotspot, then be sure to focus on investments in the Salford area and city centre locations for the best possible returns.

Why Make a Student Accommodation Investment in Manchester?

  • The Manchester student scene is thriving, welcoming high numbers of students to its growing population year after year.
  • Potential rental income is high in certain Manchester areas.
  • Manchester is a great city to invest in if you’re looking for investment opportunities with strong capital growth.
  • Manchester is home to some of the UK’s top universities.

3. Leeds

Student Population: 60,000

Average Rental Yield: 5.12%

Average Property Price:  £265,293

Predicted Regional House Price Growth: 24.1%

 

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, the higher yields available in this area suggest that student accommodation investment offers some of the best rental yields of any buy to let strategy.

 

Why Make a Student Accommodation Investment in Leeds?

  • Leeds has high rental return potential, with average yields of over 5%.
  • Regional property price growth in the Yorkshire & the Humber region exceeds the expected UK average of 20.4%.
  • Student numbers in Leeds are higher than in many other UK areas, ensuring high demand.

4. Sheffield

Student Population: 60,000

Average Rental Yield: 4.99%

Average Property Price: £200,064

Predicted Regional House Price Growth: 24.1%

 

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 4.99% 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%. With S1 being one of the best student accommodation areas in Sheffield, this goes to show that those who wish to purchase student buy to let property in Sheffield should definitely explore city-centre locations for the best rental returns.

Why Make a Student Accommodation Investment in Sheffield?

  • Sheffield boasts similarly high student numbers as Leeds.
  • Average property prices in Sheffield are relatively low, and average rental yields show a lot of potential.
  • Regional property price growth sets Sheffield apart from selected other UK regions.

5. Nottingham

Student Population: 65,000

Average Rental Yield: 4.55%

Average Property Price: £260,563

Predicted Regional House Price Growth: 22.6%

 

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 cities like Sheffield and Newcastle, however, those looking for the best student buy to let areas of 2020 and 2021 might not immediately consider this city as a strong contender for rental returns.

 

Why Make a Student Accommodation Investment in Nottingham?

  • A reputation as a vibrant student city, with a high student population.
  • High potential rental yields, although not as high as those found in other cities.

6. Cardiff

Student Population: 80,000

Average Rental Yield: 3.79%

Average Property Price:  £264,192

Predicted Regional House Price Growth: 22.3%

 

Cardiff is another UK city that is known for its student scene, and PBSA in the Welsh capital is considered a profitable venture due to a number of reasons. Cardiff itself is a city that’s seeing a high level of regeneration. With trendy new bars and restaurants popping up across the city, and huge past projects such as Cardiff Bay, it’s easy to see why many property developers are introducing new property developments in the city.

While the average rental yield in Cardiff is a little lower than some of the other cities in this list of where to buy student accommodation in the UK, the high student population and strong capital growth prospects make this city stand out as a great place to invest in student accommodation. However, property prices are on the higher side compared to those in more affordable areas like Liverpool, so investors looking to get the best deals may want to look elsewhere.

Why Make a Student Accommodation Investment in Cardiff?

  • Cardiff has one of the highest UK student populations, ensuring consistent demand.
  • Cardiff is a thriving regeneration city, with a lot of investment interest.
  • Student housing in Cardiff may see some level of property price growth, although not as high as the growth expected in other areas.

7. Birmingham

Student Population: 80,000

Average Rental Yield: 4.12%

Average Property Price: £246,844

Predicted House Price Growth: 21.7%

 

Located right in the center of the country, Birmingham is a top student city, boasting a large student population and a high-ranking university, the University of Birmingham. Birmingham offers great nightlife and a lively cultural scene for students to enjoy, along with an array of annual festivals such as the Birmingham Comedy Festival.

Again, however, Birmingham may not be the best city to invest in if you’re after low property prices, with an average of around £246,844 according to Zoopla asking prices. Investors who invest in purpose-built student accommodation in Birmingham may not end up with the highest possible rental returns, either, with a lower rental yield average than can be found elsewhere.

Still, if you’re set on a Midlands-based student investment, and you want to ensure a high level of rental demand, investing in student accommodation in Birmingham could be a good option.

 

Why Make a Student Accommodation Investment in Birmingham?

  • Birmingham has a large student population thanks to great universities and a strong cultural and nightlife scene.
  • Rental returns and capital growth in Birmingham is relatively high compared to cities in the South of England.

8. Newcastle

Student Population: 42,000

Average Rental Yield: 5.47%

Average Property Price: £198,932

Predicted House Price Growth: 21.7%

 

Home of the Geordies, Newcastle is the largest city in North-East England and deserves a feature in any guide to the best place to invest in student accommodation. Average student population statistics found online hint that the number of students living in Newcastle may be lower than other student cities. However, with high average rental yields and affordable property prices, Newcastle is still a city worth exploring for its student accommodation investment potential.

Newcastle, like many other student cities in the UK, has built a reputation as a great city for a night out. In fact, in a 2019 guide to the best UK universities for nightlife, Newcastle comes in third after Liverpool John Moores University and the University of Liverpool. This, combined with the high-class learning on offer, ensures a high level of demand for purpose-built student accommodation.

Since Newcastle’s predicted regional property price growth is on the lower side, however, property investors that are set on capital appreciation should expect minimal growth in Newcastle compared to the growth they can find in the North West or other regions.

 

Why Make a Student Accommodation Investment in Newcastle?

  • Low property prices make Newcastle a great choice for investors seeking an affordable spot to invest in student accommodation.
  • Rental yields in Newcastle have a high average, suggesting attractive rental returns, although capital growth returns may be limited.

9. Edinburgh

Student Population: 34,275

Average Rental Yield: 4.05%

Average Property Price:  £332,102

Predicted House Price Growth: 25.4%

 

The Scottish capital of Edinburgh is a hotspot for student investment in the UK. The University of Edinburgh is one of the most prestigious universities in the UK, and even ranked 20th place for the best worldwide universities back in 2019. Student numbers in Edinburgh appear to be lower than the student population in Liverpool and Manchester according to Google search results, however, this doesn’t change the fact that Edinburgh remains a thriving student city.

Many students are drawn to Edinburgh not only for the higher education opportunities available, but also the world-famous cultural scene. However, as far as investment prospects go, rental returns may be on the lower side based on the city’s average rental yield percentage.

The city also has a current average asking price of £332,102 according to Zoopla, making it a miss for anyone who wants to invest in UK student property on a budget. Capital growth, on the other hand, is strong for Scotland, with the second highest predicted growth rate next to Liverpool.

 

Why Make a Student Accommodation Investment in Edinburgh?

  • Edinburgh welcomes university students from around the globe due to its prestigious reputation.
  • Predicted house price growth in Scotland is the second-highest in the UK.

10. Brighton

Student Population: 21,009

Average Rental Yield: 4.9%

Average Property Price: £476,445

Predicted Regional House Price Growth: 17.3%

 

If you’re keen on investing in property in the South of England, Brighton is a student city that should be on your radar. Brighton has a reputation as a great university city, especially for those studying for more creative degrees. This seaside town is also known for its large LGBTQ community and forward-thinking attitude.

International students make up 27% of the student population in Brighton, and while student numbers appear on the low side according to Google findings, average net yields of 4.9% make Brighton student accommodation investment opportunities a lot more promising than those in other Southern areas of the UK. On the other hand, regional projected capital growth is at the second-lowest rate next to London, and high average property prices of £476,445 make UK student property investments in Brighton out of reach for many investors.

 

Why Make a Student Accommodation Investment in Brighton?

  • Brighton is a good choice for investors who want to invest in student property in the South.
  • Brighton boasts a high population of overseas students.
  • While capital growth is expected to be low over the coming years, it is still higher than the growth predicted for London.

11. Slough

Student Population: Unknown

Average Rental Yield: 4.17%

Average Property Price: £331,938

Predicted Regional House Price Growth: 17.3%

 

Slough is an area that’s gaining more attention for its buy to let market, including its student property market. Once seen as a run down Berkshire town, Slough property investment has not always been an obvious choice. Today, however, the areas booming economy and ongoing regeneration have helped to increase interest in the area. Slough is also a top student city for those looking to learn in the South East region.

Just a short train ride to London, and students living in Slough can enjoy the choice of universities available in the capital. Compared to renting in London, Slough property is a lot more affordable and so living in this town during studies is a popular choice for many students. Average rental yields available in Slough are just below those of Brighton, but still offer an attractive prospect.

Be sure to read our brand-new Slough property market report for a deep dive into the Slough market in 2021 and beyond.

 

Why Make a Student Accommodation Investment in Slough?

  • Slough offers attractive future capital growth within the South East region.
  • Slough is a regeneration hotspot and boasts a booming economy.
  • The town is an ideal base for students attending universities in London.
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Liverpool Prices from £69,955

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Liverpool Eco Apartments

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New Launch of Eco Development

Liverpool Prices from £92,950

8% NET Rental Return

300m away from new £1b Royal Hospital

Completed & 100% Tenanted

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Historic Victorian Building

Liverpool Prices from £74,995

8% Assured NET Rental Return

100% Tenanted

Limited Units Remaining

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Dual-Use Apartments

Liverpool Prices from £78,950

8% NET Rental Return

£7bn Pound Regeneration Zone

Final Release

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Premium Micro-Apartments

Liverpool Prices from £75,950

8% NET Rental Return

In £2bn Knowledge Quarter

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Liverpool Prices from £59,995

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Which City Is the Best for Student Accommodation Investment?

Liverpool uk city spots worth exploring Liverpool uk city spots worth exploring

While our list of the top 11 cities for investing in student accommodation was filled with some fantastic options, there are two clear top contenders. When factoring in rental yields, capital appreciation, and student demand, Liverpool and Manchester are the best places to invest in student accommodation in the UK.

With a 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. Even throughout 2020, the North West has remained a solid investment city, with rising property prices and growing rental demand despite the ongoing Covid-19 pandemic.

Since student property is often a popular asset class for first-time buy to let investors, the low property prices of these two cities also make investing a lot more accessible for those with smaller budgets.

Property Investment Manchester Property Investment Manchester

What Are the Best Student Areas in Liverpool and Manchester?

The figures suggest that Liverpool and Manchester are the best student cities UK investors should focus on when searching for a student property purchase, but 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.

London tourism capital of the UK London tourism capital of the UK

What About Student Accommodation Investment in 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, King’s 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 three Liverpool postcodes to three 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.

Liverpool Vs London Yields

Statistics found on totallymoney.com

Invest in the Best Student Buy to Let Areas 2020 and 2021 With RWinvest

If you’re considering taking the first step to invest in student accommodation, don’t miss our range of student accommodation investment 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 receive 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 investment opportunities on the market. We also offer some great residential buy to let opportunities for those keen to grow a versatile property portfolio.

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.

 

Disclaimer:

This guide to the best place to invest in student accommodation was last updated in November 2020. The statistics on property prices and rental yields were taken from Zoopla housing market data and Totally Money’s buy to let guide, and the student population statistics were found via various UK university websites.

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