The student property market in the UK is booming with huge investment going into purpose built student accommodation in popular cities like London, Liverpool and Manchester. Here are our tips on how you can generate the best returns in this market.
1. Make sure your investment fits your appetite for risk
There are currently opportunities to invest in student property all over the UK from smaller towns to popular regional cities such as Liverpool, Manchester and Cardiff. All of these cities have more than one established university and long histories as centres of learning.
This means they have solid long term demand each year and currently a shortage of available properties to meet demand. The cities are the place to invest if your appetite for risk is low and there are plenty of opportunities to purchase student apartments for less than £100,000.
2. If you want less work opt for purpose built student accommodation
There are several ways to invest in student property. You could go for the long route by investing in a house and turning it into a House of multiple occupation (HMO). To do this you may need planning permission and a licence.
There are unlikely to be many profitable student houses placed on the secondary market so be choosy about what you purchase if the property isn’t new. The easiest route and the best if you don’t want to commit too much cash up front is to invest in purpose built student accommodation.
Typically, you buy the unit and take a return each year and buildings are managed thus removing the hassle of having to do the work yourself.
3. Student property shouldn’t be viewed as a soft option property investment
Gone are the days when students were content with poor quality housing, broken second-hand furniture and flimsy old fashioned kitchen appliances.
If you want to generate a good return on student property, make sure that it is presentable. Doing anything other than this will only attract the wrong kind of student tenant.
The better presented your property is, the more you can charge in rent because good student accommodation is in high demand.
4. Make sure the property is welcoming
The UK has seen huge growth in foreign student applications, which is one of the reasons why pressure is being put on housing stock close to campuses. If you are arriving from another country to live and study, you will want to live somewhere that is welcoming and makes you feel at home.
5. Always invest in property as close to campus as possible
One thing that hasn’t changed is demand for student property close to campus. Most students will appreciate the convenience of a short walk to lectures and seminars and those students who move to the UK from overseas will find it easier to navigate when they first arrive.