The UK student accommodation market is booming!
The demand for student accommodation, and consequently student property investments, is growing at an unprecedented rate, driven by a steadily expanding student population in the UK. Currently, the UK has 2.93 million students, with projections indicating an increase of 400,000 by 2030. This surge is fueling a wave of new student accommodation developments, presenting a prime opportunity for savvy investors. With rental yields ranging from 2% to 5% above the national average, the student accommodation sector offers attractive returns. Its consistent demand and stable market conditions make it a resilient and reliable asset, providing exceptional long-term value for any property investor’s portfolio.
Explore the different types of student accommodation and the benefits of investing in student property!
Purpose-Built Student Accommodations (PBSA) and student HMOs (Houses in Multiple Occupation) provide investors with excellent entry points into the student property market. These properties are typically fully managed, eliminating the need for investors to oversee day-to-day maintenance and management. Additionally, the lower initial investment cost is a significant advantage, making it an accessible option for a wider range of investors. Many of these properties are also eligible for tax exemptions, further reducing the overall investment costs and enhancing the financial appeal of these opportunities.
Discover the key locations for student accommodation investment and what makes them so appealing!
As the UK’s student population continues to grow, certain cities are emerging as prime locations for student property investment. Liverpool, a dynamic cultural hub, is home to over 70,000 students annually, creating consistently high demand for student accommodation. Similarly, Manchester boasts over 120,000 students each year, spread across the vast Greater Manchester area, ensuring a strong and diverse rental market. Nottingham, ranks as the 4th most popular city for students in the UK, is home to more than 46,000 students, offering a wealth of lucrative student property investment opportunities. These cities present investors with thriving markets and excellent prospects for long-term returns.
