3 Areas to Consider When Investing in Student Property [2022]

Student property is likely one of the most popular methods of buy to let property investment in the UK at the moment.

It is typically much more affordable than regular residential properties, and in cities with high demand for these developments, investors can rely on a steady and reliable income for most of the year.

In 2022, the demand for student housing is skyrocketing.

In June, Unite reported that they’d already filled 90% of their accommodation units for the academic year.

In 2019, the developer only recorded 89% of filled spaces by the same point that year.

When looking at the pandemic rates – which proved to be a particularly successful period for the property market overall – these 2022 numbers are even more impressive. Unite only recorded 81% of their spaces as being filled.

It’s clear then that there is a fast-growing hunger for high-quality student accommodation, but what should any would-be property investor be on the lookout for?

Well, without further ado, here are some of the best areas to invest for student property investment!

Manchester

Certainly one of the best areas for property investment in general, Manchester boasts one of the UK’s most vibrant student scenes.

Flaunting affordable house prices alongside some of the most impressive price growth rates in the entire country, property in Manchester is an incredibly lucrative venture.

With some of the best universities in the world, students are flocking from all over to live and study – allowing for some of the UK’s highest student retention rates, with around 51% staying to work in the city after graduation.

Acting as another incentive, Manchester is also famously home to a lively nightlife scene – with a whole host of various nightclubs, restaurants and bars.

Why Invest in Manchester? 

  • One of the largest student populations in Europe, with over 100,000 students.
  • One of the highest capital growth rates in the UK, with a 371% increase since 2001.
  • The second-highest graduation retention rate in the UK, with over 51% of graduates staying in the city.
  • The current average rental yield in Manchester stands at around 6.59%.

Liverpool

With a similarly iconic nightlife scene, excellent universities and some of the best property prices, this maritime city has been a top destination for students and investors alike.

Combine this with the fact that prices for premium student accommodation typically fall below £100k, and Liverpool almost definitively makes for a compelling investment opportunity.

Liverpool has seen some of the highest capital growth over the past year, with property prices almost 19% higher than in 2020.

Why Invest in Liverpool? 

  • One of the most affordable locations with a considerable return potential of upwards of 8% rental returns.
  • Massive student population – Over 70,000, with a significant international population.
  • One of the top UK cities for nightlife and culture.
  • World-class employment opportunities to attract thousands of students and convince them to stay in the city.

It’s also important to note that the North West is expected to see additional growth of 11.7% by 2027, exceeding many other UK regions – including London.

Edinburgh 

The Scottish capital is another massive hotspot for student investment in the UK.

The University of Edinburgh is one of the most esteemed universities in the country – ranking 4th in the UK and 22nd for the best worldwide universities last year.

Now, student numbers in Edinburgh are slightly lower than the others on this list – but don’t fret!

Edinburgh is very firmly still a thriving student city.

Many are drawn to the city for its numerous work and school opportunities and world-famous cultural scene.

Currently, there are six universities – and even more things to do!

This includes; music venues, art galleries, shopping centres and fantastic green spaces.

Why Make a Student Accommodation Investment in Edinburgh? 

  • The city brings in students from across the globe, with its prestigious reputation.
  • Predicted house price growth in Scotland is some of the highest in the UK.
  • The University of Edinburgh is in the top 5 UK universities.

Investment prospects in the city are also excellent, but prices may be an issue for investors – with current averages of just over £337k, according to the latest from the Land Registry. While prices are high, they are also set to get even higher, with predictions of around 25% by 2025.

All in all, student property is definitely one to look out for.

So, hit the books – learn all you can and get involved with student property investment whilst it’s still a hot commodity!

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