As a property investment, student property in the UK has exploded in popularity in the past decade or so thanks to quite a few factors.
Firstly, the government lifting the cap on university numbers meant that institutions across the country were able to accept a lot more students, making more money and meaning the sector grew quickly.
Secondly, the rise of Purpose Built Student Accommodation, or PBSA, has meant that investing in this asset class has become much more professionalised in recent times, with modern and high-quality student flats and apartments commanding higher rents and therefore allowing investors to earn more in yields and rental income.
Finally, the UK’s university sector is one area that the country genuinely leads the world on, so international students are always keen to come and study in the UK, resulting in phenomenally high demand.
Is student property in the UK a good investment?
The demand for student property in the UK remains consistently high. With a significant number of universities and colleges attracting domestic and international students, there is a continuous need for appropriate housing, ensuring a steady stream of potential tenants, reducing the risk of void periods and providing a reliable rental income.
Moreover, the UK has a reputation for offering high-quality education, attracting students from around the world. This global appeal creates a diverse student population, further contributing to the stability and resilience of the market. The influx of international students also offers the potential for higher rental yields, as they are often willing to pay a premium for well-maintained and conveniently located properties.
Additionally, the UK government has shown consistent support for the higher education sector. Policies and initiatives, such as relaxed visa rules and increased funding for universities increase the appeal of studying in the UK. This, combined with the country’s strong academic reputation, ensures a sustained demand for student accommodation and a positive investment environment.
University towns and cities tend to experience steady property price growth due to the ongoing demand and limited supply of suitable accommodation. This presents an opportunity for investors to benefit from both rental income and potential long-term capital gains, enhancing the overall return on investment.
Investing in student property in the UK is often a good decision due to the high demand for accommodation, the country’s strong reputation for education, government support, the potential for capital appreciation, and the advantages offered by purpose-built student accommodation. These factors make student property investment an appealing option for investors seeking stable returns and long-term growth prospects.
If you’re interested in student accommodation investment why not get in touch with us today?