Everything You Need to Know About Student Property Investment in the UK

If you have been keeping tabs on the best performing investment vehicles over the last few years, you’ll already be aware of student property and just how good an opportunity this part of the housing sector can be for investors. If you haven’t, or you simply wish to find out more about it, you’ll be glad to hear that you’re in the right place to get the low down on student accommodation in the UK, and the benefits that it can bring as part of a diversified portfolio.

What are the yields like?

As with any investment, the return that you receive may vary, but on average an investor in student property can expect to receive around 6 per cent. Some parts of the country, however, can produce yields of 7 per cent and beyond.

Image credit: serezniy via 123RF

Is the demand really there?

Most definitely. Student applications across Britain are at an all-time high, and the prediction for the future is that numbers will grow considerably. This is largely due to the fact that the government recently lifted the cap on how many students each university could have on their books, but there is another reason that is especially pertinent to investors.

Overseas students are heading to the UK in record numbers. British universities are seen as amongst the best in the world, and the vast majority of students hoping to get the finest education that they can are applying to at least one UK university. Why does this matter to investors? Well, they all need somewhere to stay while they are studying, and your property will fit the bill nicely!

Image credit: dolgachov via 123RF

Is it a safe way to invest?

Of course, all investments carry a certain degree of risk, but when compared to other forms of investment, student accommodation fares extremely well. This part of the housing sector has continued to go from strength to strength over the last decade, despite the global financial crisis that hit in 2007 and 2008. Compare that to the stock markets across the world – some of which are looking particularly shaky at present – and you have good reason to be confident that your investment will perform as expected.

Image credit: ryanking999 via 123RF

Relatively fast turnaround

While having students as tenants can be a risk, the turnaround time makes up for many of the downsides to having students in your property. One to two years is about the norm for most student lets, and should the worst come to the worst, you get to keep their deposits to make right any issues that may have arisen while they were there.

As we’ve already touched upon, finding new tenants will not be a problem if you are close to one of the UK’s many distinguished seats of learning, so fill rates should not be an issue even with this fast turnaround of tenants. Many investors are finding that simply being on a bus route that leads to the local uni is enough to secure multiple enquiries each time they place their property back on the market.

Image credit: scyther5 via 123RF

If you liked this post why not read Why Student Property Is the Most Popular Investment In The UK or check out our infographic covering yields across UK student lets.