A top contender for the best property investment strategy, purpose-built student accommodation has shot up in popularity since 2019.
Purpose-built student accommodation is another type of buy-to-let property investing strategy. The only real difference is that with PBSA, you will rent exclusively to student tenants.
A report from Savills in early 2021 found that over £5.77 billion was spent on student accommodation in 2020 – the highest-ever amount in one year.
This goes alongside a thriving UK student market, which has seen the number of 18-year-olds applying to an undergraduate course in 2023 ranking as the second highest on record – with 314,660 applying, down slightly from 320,420 in 2022 but significantly higher than the pre-pandemic figure of 275,300.
With many students seeking stylish and well-located accommodation to live in during their time at university, there’s likely never been a better time to invest in a student buy-to-let strategy.
You can learn more about student property investment in our detailed ultimate guide for 2023.
Top tip: Focus on student cities with a high student population and graduate retention rate to ensure tenant demand. Examples of top student cities include Liverpool, Manchester, Birmingham, Leeds, London and Newcastle.
- A good option for first-time investors due to low property prices and high yields.
- Offers a combination of rental income and capital appreciation for maximum returns.
- High and consistent rental demand due to a booming UK student property market.
- Hands-off investment options make student buy-to-let easy and hassle-free.
- May not see as high capital growth returns as you do with residential buy-to-let.
- Limited to one tenant group.