Should I invest in UK student property?

As specialists in the student property market, we’ve seen an increased amount of queries from clients asking ‘Should I invest in UK student property?’.

Investing in UK student property in 2023 has become increasingly popular due to the high demand and profitability of this type of asset, sometimes referred to as PBSA (Purpose Built Student Accommodation).

Not just in classically popular urban areas such as Manchester, Liverpool and Leeds, but PBSA has become increasingly popular in newer student areas such as Stoke-on-Trent and Bolton thanks to the increase of applicants attending universities in these areasa.

UK student property in 2023

The UK boasts some of the best universities in the world, attracting students from global communities. This increasing demand for student accommodation presents several investment opportunities for savvy investors looking for alternative investment avenues.

According to research, over the past decade, there has been a 30% increase in student enrolment across the UK.

Investing in student accommodation comes with a lot of benefits, so we’ve decided to list some of the most significant.

Stability, High Returns & High Occupancy

One of the main benefits of investing in student property is stability. The student population is growing year on year, and subsequently, there is always a demand for student accommodation across the UK. This stability in demand ensures that investors will enjoy a consistent rental income throughout the year, making it a wise long-term investment.

The student accommodation market offers some of the highest returns on investment around. This is because, unlike traditional buy-to-let properties where landlords deal with single renters or families, with student accommodation, a landlord tends to deal with groups of students, which translates to higher yields. According to recent market analysis, student accommodation investments generate a net yield of anywhere between 4% and 6%.

The student accommodation market offers low void periods compared to other types of investment properties. This is because the demand for student accommodation is almost always high, and tenant renewals are much more frequent, reducing the risk of void periods.

Is it worth investing in UK student property?

So, what does the future hold for investors in the student accommodation market in the UK? Well, based on current trends, the future’s looking bright for the market. With the Brexit transition finally over and the UK still showcasing some of the world’s leading universities, investors should expect a continued increase in student enrolment numbers.

Investing in UK student property in 2023 is a wise choice for savvy investors who are looking to diversify their investment portfolios. With the constant growth in the student population and demand for accommodation, coupled with the high returns generated by student accommodation, investing in this market is one of the best ways to secure a steady and sustainable income.

If you’re interested in investing in student accommodation, why not contact us today?