Student property accommodation investment

The student property accommodation investment market in the UK has experienced fantastic growth over the last few years and it's now regarded as one of the most attractive asset classes in the investment industry. With investment in the sector hitting a record £5.75bn in 2015 and 2016 also being a bumper year, more and more investors are turning to student property to build their portfolios.

One of the key reasons that student property accommodation investment has been so successful in the UK can simply be put down to supply and demand. There are currently around 2.3 million students in the UK, and, at the moment, there is only around 530,000 purpose-built student rooms available. Therefore, the demand for student property is massive.

Discerning students require high quality accommodation, good access to wi-fi, rents that include bills, a secure environment and the convenience of property management. PBSA (Purpose-Built Student Accommodation) delivers this as well as the flexible options on tenancy lengths that are so important when you're studying at college or university.

Benefits of student property investment

From an investors' perspective, student property accommodation offers a hassle-free, hands-off investment opportunity that has many years of proven stability and has typically delivered yields of between 7% and 9%. Other attractive features include:

  • A growing student market
  • Guaranteed rental returns (many developers provide five years of rental assurance)
  • A low cost of entry (investments tend to range from £50K to £100K)
  • All maintenance handled by management company so it's a hassle-free, hands-off landlord experience.
  • Outperforms traditional investment options such as ISAs, equities and bonds
  • Strong potential for capital growth when it's time to sell

High demand for student property

With student number caps being lifted, universities can recruit as many students as they want. Halls of residence can only cope with so many and increasingly, students are opting for higher quality accommodation. University applications are on the increase in the UK and the influx of international students is still on an upward trajectory. This means that the demand for student property will continue to be high and finding tenants shouldn't be a problem.

Hassle-free Investment

Achieving regular and stable rental returns is one of the main goals for any investor in the property market and student property enjoys consistent and predictable occupation levels. For any investor who doesn't want the hassle of being a traditional landlord and having to deal with such matters as finding tenants, organizing insurances, dealing with void periods and handling complaints, maintenance, repairs etc, student property accommodation investment and the benefits of working with a management company is the ideal solution.

To find out more about investing in student property and what it entails, contact us now on 0333 3001 888 and speak to one of our team of investment specialists.