Why should you invest in student property?
Choosing the right investment is crucial for property investors, and student accommodation has consistently proven to be a lucrative option. The UK remains a global hub for university students, with increasing numbers every year. This steady growth ensures high demand for student housing, creating ample opportunities for investors. With lower entry costs compared to typical UK properties and yields ranging from 7% to 10%, student property presents an attractive investment strategy for savvy investors
What are the advantages of investing in student accommodation?
Investing in student accommodation offers numerous benefits. These properties are typically fully managed by a property management company, making them hands-off investments that free investors from landlord responsibilities. Additionally, student accommodations tend to have high occupancy rates, with tenants often staying for multiple years. This leads to steady rental returns and reduces vacancy risks compared to other types of buy-to-let investments.
What should you consider when investing in student accommodation?
Before purchasing student property, investors should consider a few key factors. Many student property investments require a fully funded cash purchase, so it’s essential to assess whether you have the capital to move forward. Location plays a critical role in the success of the investment, as areas with high student populations tend to perform better. Investors must also decide between purpose-built student accommodations (PBSAs) and student HMOs (houses in multiple occupation), each offering distinct advantages.
Where to invest in student accommodation?
Cities like Liverpool and Sheffield stand out as top choices for student property investments. Liverpool’s student market is thriving, with soaring demand for student housing. Sheffield, home to two prestigious universities and over 60,000 students, offers excellent potential for investors to capitalise on the growing demand for accommodation in the area.
