Increasing numbers of property investors from the UK and abroad are
choosing to invest their cash in student housing. Around £1.6 billion was
poured into student housing between January and September this year.
Unlike other property in the commercial sector, student housing offers
investors returns of around 10%, which is a lot better than any rates on
offer from a traditional savings account. It’s also a lot better than the
returns you can expect from residential lets.
Student Housing Sector Set to Grow
The government has pledged to continue backing education for the
foreseeable future and George Osborne has just announced that a further
30,000 university places will be made available from next September. He
has also stated that existing restrictions on the number of student
places on offer at UK universities will be lifted.
Rise in the Number of Foreign Students
Industry experts predict that the number of foreign students coming to
the UK to study is set to increase by 15-20% in the next five years. This
is of course great news for landlords operating in the student sector. As
demand for student accommodation increases, so too do rental values,
particularly in popular university cities such as Manchester, Oxford and
Leeds.
Steady rental income, high occupancy and low void periods, combined with
high returns on investment, make student housing a popular investment for
small and large landlords. But in order to maximise your profits, you
need to operate in the right areas, so do your research before you buy a
student property.
