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Is it time to invest in student property?

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We’ll always caveat an answer of that nature by saying that everybody’s best investments are going to depend on their individual circumstances. What’s right for one may not be the case for another, and vice versa. 

Broadly speaking, these are rocky economic times for the country at large and many of the Western nations in America and Europe. That’s due to a number of factors, not least the war in Ukraine, the fuel crisis and the cost of living crisis. These together are exacerbated by very high inflation, in recent historical terms. 

That’s not to say, of course, that there aren’t solutions to these types of situations in terms of protecting and growing your wealth. 

One area that has proved it’s worth in that respect is UK property, but If you’re new to this type of investment then you might have understandable questions about what types of property or what asset classes may be right. 

Again, that will depend on your situation, but one asset class that is absolutely thriving in the UK and across the world right now is student property investment, so is it right for you? 

Should I invest in student property?

Before delving into whether or not your should invest in student property, let’s take a look at what student property actually is. 

Also known as Purpose Built Student Accommodation (PBSA), student property is often either off-plan or re-sale property that is a self-contained unit, usually as an apartment, within a block of similar properties, built with the sole purpose of renting out to students.

Subsequently, the entry price for these types of properties tend to be lower than if you bought off-plan for residential, but the yields are often just as good if not better, and the properties are almost always tenanted and managed, making the work on your part minimal. 

Student accommodation doesn’t tend to increase in value at quite the same rate as residential property as it can be considered fairly niche in that it caters exclusively to university students, but the occupancy rates are often excellent and this gives an awful lot of certainty when planning your investments over the longer term. 

One aspect that is certainly key when deciding to invest in student property is location. When thinking about the initial cost of investment it’s true that you’ll pay less in less established student areas and smaller towns, but you’d need to consider whether this is a better long term strategy than investing in somewhere such as Manchester or Liverpool with a large and established student population. 

Again, there’s no right or wrong answer here as both these options have their benefits and drawbacks. 

If you’re thinking of a longer term strategy then there are many excellent options around the north of England in areas that are not just established with excellent new properties on offer such as Salford, Manchester, Liverpool and Leeds, but it also has more up and coming areas such as Bolton, areas of Sheffield and areas such as Warrington and further afield. 

All in all, there’s a very good reason why student accommodation is exploding in popularity with investors all around the world and especially in the UK. 

Some numbers to consider if you’ve been thinking about investing in student accommodation in the UK is that student numbers are at 2.66 million, nearly their highest ever, and expected to continue growing. 

Just last week the government announced new schemes to attract international students to the country with a long term strategy in mind to continue to grow the UK student population. 

Student accommodation is a fantastic asset class to protect and grow your wealth, so if you’re interested then why not get in touch with somebody today to discuss what we have available? 

Did you enjoy this article? If so, why not take a look at our lastest property investment articles here!

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