According to experts in the property rental industry, the demand for student accommodation continues to outstrip supply across the board and many savvy property investors are taking advantage of this state of affairs by snapping up properties in the student sector.
The latest figures indicate that the amount invested in student accommodation has risen by 220% in the last twelve months, which equates to around £860 million. This suggests that more and more landlords are realising the potential diversifying their property portfolios and buying properties suitable for student accommodation.
Somewhat surprisingly, many of these new investors are from overseas. These investors see the UK student property market as a relatively safe investment with a good rental yield.
Is student accommodation a good buy for landlords?
Student occupancy is currently around 99% across the UK. Demand is incredibly high and looks likely to remain so, so investing in accommodation for students is an excellent way for UK landlords to expand their portfolios. The market is very much driven by supply and demand and with the numbers of students on the rise your investment is likely to be safe for the next few years at least.
What types of properties are suitable for student accommodation?
Long gone are the days of derelict older properties that were riddled with damp and infestations, but marketed at students nevertheless. Modern students expect far higher quality accommodation and are prepared to pay extra for it, and a growing number of wealthy overseas and mature students means you can invest in a better class of property and still market it at the student sector.
