In city centres across the UK, new blocks of student apartments are being built at an incredible rate. Why? Because there is an increasing demand for purpose-built student accommodation that shows no signs of slowing. The recent publication of The National Student Accommodation Survey 2019 says nine in ten students have some kind of housing issue with traditional rental properties. If you are considering investing in property in the coming months and years, one of the most attractive propositions in the UK currently is the student accommodation sector. In fact, in recent years, property price increases in some areas have been enough to fund a three-year course in university tuition fees! It may be clear that there are some good opportunities for investment in student accommodation, but where do you begin your search? And where are the best places to invest in student property accommodation?
Where are the Best Places to Invest in Student Property Accommodation?
A trend we have noticed is that buy-to-let landlords have shifted towards student accommodation due to recent changes in tax regulations (you can read our comprehensive guide to these changes here) but you still need to decide where is best to invest.
It is safe to say that wherever you choose to invest in student property, you have a good chance of receiving a healthy return in the long term, with over half of the UK’s top 50 university cities seeing property prices rise, on average, by around £29,000.
One city that seems to have been a popular choice in the last couple of years for investment is Coventry, with the average house price rising by 61% between 2015 and 2018. Other notable university towns and cities with increased property prices include Manchester (average price rise of 26% in the period of 2015-2018), and Bristol (average house price increase of £53,000).
The bottom line is that where there is cheaper housing and growing student populations, there is a route to good rental yields. This can be found in towns and cities such as Liverpool, Preston, Newcastle-under-Lyme, as well as other growing cities that provide a much better investment opportunity when compared with London and traditionally affluent areas.
Despite growing tuition fees, the student population boom continues to increase. Even where UK residents might struggle to come up with the tuition fees to fund a university course, there continues to be large numbers of international students arriving in the UK for three- to four-year periods to study at our well-respected universities. This provides an attractive student property potential for new buy-to-let landlords interested in the student sector as an investment opportunity.
Residential Estates has a wide selection of student property investment opportunities for you to take advantage of. If you would like to speak with a member of our team, we will be happy to assist you in identifying the best places to invest in student property accommodation for your budget and goals. We will help you find the key areas of student accommodation expansion in cities and areas where we expect the biggest return on your investment.
To find out more, you can reach us on 01244 343 355 or by emailing firstname.lastname@example.org