With around 70,000 students in Liverpool during term time, it’s no surprise that demand for accommodation is high. And with the number of undergraduate placements rising from the 2015/16 academic year, there’s still need for high-quality housing within the city.
For investors, this means numerous opportunities are available in the thriving buy-to-let sector, especially for purpose-built student accommodation.
The University of Liverpool, John Moores University and Liverpool Hope University comprise around 60,000 students alone, an increase of around 10,000 from last year.
As well as the three main universities, there’s also the Institute for Performing Arts, School of Tropical Medicine and numerous other colleges within the city – pushing the total number of students up even further.
Research by the Mistoria Group shows that these figures have caused a 37% growth in demand for shared student accommodation within a three mile radius of the city centre.
Developers have been quick to recognise the rise in student numbers and short supply of bespoke housing in Liverpool. With demand for high-quality accommodation growing, a number of uber-modern student developments, such as the luxurious Fox Street Village and Queensland Place, have sprung up in recent years.
With a rich cultural and sporting heritage, combined with a diverse nightlife and affordable housing, Liverpool in itself will always attract high student numbers. With its higher education institutes offering a vast array of courses, there’s no sign of the trend slowing down.
As another bonus, an increasing number of students are remaining in Liverpool once they’ve graduated. This flow of young professionals boosts the rental sector even further, especially as renters with a career-driven mindset make for high-quality tenants.
Increased government investment in the ‘northern powerhouse’ is coinciding with massive regeneration schemes in Liverpool itself. As we move further into 2017, 250 major new schemes worth £10.5 billion are seeking planning approval or at early stages of project development.
Purpose-Built Student Accommodation (PBSA)
The 560,000 rooms that make up the UK’s PBSA market are estimated to be worth £46 billion in total. This is being helped as both students and universities move away from traditional halls of residence style accommodation.
Purpose-built halls cater to the demands of modern-day students, with private bathrooms, large common rooms, strong Wi-Fi connections and even gyms in some cases. They’re especially appealing to wealthier foreign students whose parents like the idea of a secured building in close proximity to the campus.
Purpose-built halls will often be managed by a letting agency. This is a recommended route into the student sector for investors. Everything is controlled on your behalf, from dealing with student enquiries to collecting payments. Rental yields of around 7-10% are assured with a guaranteed stream of tenants every year.
To find out more about investing in Liverpool’s student property market, get in touch for a chat.
If you’d like to know more about investing in student accommodation, you might be interested in The Boom in Purpose Built Student Accommodation.