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UK Student Property Investment: Should I Invest?

UK student property investment

UK student property investment has come an awful long way since it was considered something of a niche pursuit even as recently as 10 years ago.

Due to booming student numbers and a large increase in international student numbers, the market is thriving with new properties coming to market regularly and a big demand to snap them up as soon as they become available. This consistent demand for student accommodation creates a stable and reliable rental market.

Investing in student property also offers the potential for attractive rental yields. Due to the communal nature of student living, multiple students often share a property, allowing landlords to maximise rental income by charging per room. Moreover, purpose-built student accommodation (PBSA) developments with modern amenities and convenient locations tend to command higher rental rates, further enhancing returns on investment.

For those looking for a reliable investment that brings strong returns and retains its value, student accommodation and PBSA are some of the best on offer.

Where is the best place for UK student property investment?

This will depend on what you’re looking to achieve from your personal investments, however, some outcomes are fairly universal across the market.

Large student areas, unsurprisingly, often offer the best long-term investment prospects in terms of demand, yields and maintenance of the value of the asset.

Cities like Manchester, Salford, Sheffield and Liverpool are often considered some of the best cities in terms of value for money, yields, occupancy and demand.

That being said, other areas such as Stoke and Bolton are emerging as new student hubs that offer excellent investment opportunities, with rising student numbers and properties becoming available, and many older buildings being repurposed specifically for student rentals.

There were few surprises in this year’s Times Higher Education University Rankings, with the University of Oxford coming out top, and a number of British universities doing very well, including Manchester, Salford, Liverpool and Leeds.

Ultimately, budget and requirements will dictate where the best place in the UK for investing in student accommodation is for you, so it may be worth speaking to an expert first and foremost.

Why invest?

Student apartments and PBSA developments are, more often than not, modern developments that offer excellent amenities and features meaning that most landlords and investors can command a premium on rental prices.

Investing in student apartments provides the opportunity for diversification within a property portfolio, reducing risk by spreading investments across different asset classes.

Student apartments are also often located in popular university cities, where there is a potential for long-term capital appreciation due to factors such as urban development and population growth.

Considering the consistent demand, higher rental yields, the potential for capital appreciation, and diversification benefits, student apartments in the UK present a compelling investment opportunity.

If you’re looking to invest in student property with a proven property specialist, get in touch with us today!

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