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

Student accommodation investment is one of the UK’s most popular buy to let investment strategies, offering high yields and excellent demand. But how can you ensure you’re investing in the right area?

Best Places to Invest in Student Accommodation

Read our guide to the best place to invest in student accommodation before getting started with your UK student investment.

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. 

During the 2020 academic year, university applications from 18-year-olds rose by 40.5%, with the number of applications from non-EU students also increasing by 10%. 

While there are several areas in the UK with large student populations, not every city has high investment potential for those purchasing student buy to let.  

This is why it’s 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 and why now is the time to take the plunge to invest in student accommodation.  

If you’re looking to buy student accommodation in the UK, make sure you read our essential guide to the top student buy to let areas.  

Get to Grips With Every Must-Know Tip For Student Property Investment in Our FREE 2021 Guide!

Get to Grips With Every Must-Know Tip For Student Property Investment in Our FREE 2021 Guide!

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Is Student Accommodation a Good Investment?

Student Investment Property Student Investment Property

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 from the UK student buy to let market. 

In recent years, fewer students live on standard campus on-site university accommodation and instead choose to rent high-quality apartments in and around the city centre.  

This change in student attitude has led to heightened demand for new build developments, with many landlords taking notice. 

Read Our Complete Guide to Student Property Investment in the UK

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Where to Buy Student Accommodation: Top 11 Areas to Invest in Student Accommodation 

Before making an investment in student accommodation, it’s essential to know about the top areas to consider for those looking to buy student accommodation. 

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. If you’re planning on investing in student accommodation, make sure these top university cities are on your radar! 

Explore Student Investments in Liverpool – Prices From £74,950 and 8% Yields

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Which City is the Best for Student Accommodation Investment?

Location of Property Investments Location of Property Investments

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. 

What are the Best Student Areas in Liverpool and Manchester For Student Accommodation Investment?

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 investing in 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 From £35,000

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

Invest From £30,000

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 £74,995

8% Assured NET Rental Return

100% Tenanted

What About Student Accommodation Investment in London?

London City - View of Tower Bridge and the Shard London City - View of Tower Bridge and the Shard

London is 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 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. 

Chat to One of Our Property Consultants About Student Property Investment Opportunities

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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.  

Find flats for sale in Liverpool, Manchester, and beyond with RWinvest.

We currently have several great student buy to let properties in Liverpool to choose from, offering yields of up to 8%.  

Our latest completed and tenanted student investment opportunity, for example, Shaw Street, offers prices from just £69,995 with 8% rental returns.  

If you’re looking to buy student accommodation and 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 can build an attractive portfolio and increase their earning potential with the best student accommodation investment opportunities on the market.  

Here at RWinvest, we are well-known for being one of the best property investment companies in the business.

We currently have some fantastic residential and student buy to let opportunities in stock 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.  

Here, you’ll find blog posts on everything from property prices after Brexit to finding the best rental yields for your investment.  

Disclaimer:  

This guide to the best place to invest in student accommodation was last updated in June 2021. 

The statistics on property prices and rental yields were taken from Zoopla housing market data and Totally Money’s buy to let guide. The student population statistics were found via various UK university websites. 

Invest From £35,000

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

Invest From £30,000

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 £74,995

8% Assured NET Rental Return

100% Tenanted