|Northgate Point||Chester||1 Bed||8.00% Net Guaranteed||5 Years||£72,888|
|The Rocket Stockton-on-tees||Thornaby||1 Bed||10.00% Net Guaranteed||3 Years||£64,995|
|Duke Street||Liverpool||Studio||8.00% Net Guaranteed||2 Years||£69,995|
|Sky Building Staffordshire||Keele||Studio||8.00% Net Guaranteed||10 Years||£52,000|
|Edgbaston Place||Birmingham||1 Bed||8.00% Net Guaranteed||3 Years||£63,995|
|Liverpool Student Property||Liverpool||1 Bed||8.00% Net Guaranteed||5 Years||£69,000|
|Liverpool One||Liverpool||S, 1 Bed||7.00% Net Guaranteed||1 Year||£79,995|
|X1 The Campus||Salford||Studio||6.00% Net Guaranteed||£90,000|
|King Street||Oldham||1,2,3 Bed||7.00% Net Guaranteed||3 Years||£69,950|
|Grand Square Birmingham||Birminham||1 Bed||8.00% Estimated Gross||5 Years||£74,900|
|Cardiff Student Village||Cardiff||Studio||10.00% Net Guaranteed||5 Years||£59,995|
|Hyson House||Nottinghampshire||1 Bed||8.00% Net Guaranteed||2 Years||£42,995|
|Leighton Hall||Preston District||1 Bed||7.00% Net Guaranteed||5 Years||£41,640|
|4 Great Moor Street||Bolton||1 Bed||9.00% Net Guaranteed||5 Years||£72,500|
|Liverpool ONE||Liverpool||Studio||7.00% Net Guaranteed||5 Years||£69,950|
Are Student Housing Lets a Good Investment?
It’s no secret that the student property market is thriving at the moment, being a much safer area for investment than the conventional sector. For that reason it’s not too much of a surprise that it is seeing an influx of interest from investors from all over the world with an array of recent data highlighting development in the market.
Real estate developers are building purpose built properties for students, and providing private investors with the opportunity to cash-in on these income generating student accommodation.
The Demand for Student Property in Liverpool
Students flock to Liverpool and investing in student suitable accommodation is a wise investment choice for the astute property investor. Areas like Lime Street Station and the City Centre are ideal for buying and letting consistently in demand student accommodation. These popular areas are not only ideal for the universities but are also well placed for shopping and the city’s famous and vibrant night life.
With a whopping 54000 students in Liverpool it is not surprising that there is a very real shortage of quality student accommodation that gap is begging to be filled and demand is consistently outstripping supply. Here you have an active market place that will pay premium rent for the right property.
Student accommodation and demand has nothing short of an excellent record in Liverpool and there is a lot of property available if you care to look in areas that might not be traditionally considered suitable for private or professional tenants. Inner city locations that may out of other tenants are areas where students due to ease and accessibility actually thrive.
In Liverpool, the student life is growing and there are many areas that can be considered now as suitable for property investment opportunism when targeting the student market. As an example the area where some of the main student housing is in the student accommodation area just off Duke Street and just around the corner Hanover Street. Duke Street is an industrial street with an odd mix of property. There are both residential houses and flats to commercial warehouses. This once industrial area that was dominated by merchants is fast becoming one of the most sought after areas and streets to live in Liverpool.
For the locals this shift is not surprising as it is this area now that is not only great for students but also by the trend setting and the rich Liverpudlians are taking this area to their hearts and while they may not be in the market to buy, the rents are still growing.
New developments such as the East Village, which consists of smart cafes, restaurants , and social areas attract out of town money, this area is becoming trendy and starting to undergo and slow period of regenerations. Look to Hanover Street as this really is one of the most famous streets in Liverpool and this is now the trendy and young neighbourhood as funky, upmarket, boutique style shops are taking residence.
Slightly down the road is BBC Merseyside and Jamie Oliver has opened a restaurant there. And almost immediately to the right is Bold Street, famous for its shops, cafes and a consistently favourite hang out for students. Not surprisingly, any property developer that has the brains to offer student accommodation here and you will have students fighting to pay you rent. Right around this student accommodation other money sources targeting students have mushroomed this includes bars, restaurants, shops, vinyl, vintage clothing shops, boutiques, bookstores and cafes.
Liverpool is calling and she is patient but don’t miss the boat and get your student property investment now to make the most of this opportunity.
The History of the UK Student Housing Market
The student housing market in the UK has emerged as a key asset class in the last decade and this trend shows no sign of declining. Despite the debts associated with studying and planned increase in tuition fees, the fact is the UK is in the grip of a recession.
Smart young people know that the job market is suffering beyond all belief and that entering the employment market at the moment, for all but the very fortunate will be a time of frustration. Many young people are taking to further education to get a good degree and ride out the worst of the market, after every dip comes a period of growth if you wait long enough.
UCAS says that demand for university courses is at a record high with nearly 700 000 applications the University received in 2010 – that was two years ago and now that number is expected to be closer to the 800,00 application mark. If in any doubt this increase in study has been on the upward trajectory for five years now, with student applications increasing an astonishing 34% in five years between 2005 and 2010.
Historically, growth in the student market has outperformed almost all other rental areas, supply and demand leading this assault on the private property market and the growing awareness that actually, tenants who are students are a good bet! The rental prices in the areas for students will tend to be higher and prevent rental wars dropping down the scale to secure good tenants. Student accommodation rents have experienced a steady growth and it is expected that they will continue to do so.
Any city or town that has or is close to a university will have a student population and this is a hungry market. Invest in a student property not only close the actually universities but those that offer good travel links to get to the place of study. Student life continues to be a social endeavour so close proximity to trendy restaurants and bars will always appeal to students.
There are also trends in the global mobility of students so while local students may not be quick on the uptake of your property if outside of a traditional student area of zone, there are a growing number of foreign students who will flock to accommodation that is marketed towards the student market place.
Keep your options open and any good central location can be made to appeal to the highly lucrative student market and it will be a worthy investment and addition to any property portfolio whether this is your first buy to let property or one of many.
How to Find a Profitable Student Accommodation Investment
Finding the perfect student accommodation can be rather difficult and tricky. Not only is there a wide range of accommodation options for you to choose from, but there are also so many different factors to take into consideration before you sign on the dotted line. So here are a few tips to help you make your choice in choosing the right student accommodation.
First make a personal assessment
Before you go looking for accommodation, you have to first assess the options available yourself. You have to assess your own personality to decide how you want to live.
You have to decide if you will be able to live on your own and do your own laundry and cooking or if you will prefer living with other people and sharing your chores.
Next, you have to decide on how much you can actually afford for your accommodation. If your budget is on the higher side, you will be able to afford the best accommodation with modern facilities and even individual rooms. However if your budget is small, you may have to either look for cheaper accommodation or find roommates who will share your room and rent.
Choose based on locations
There are many universities which offer their own accommodation for students which is actually convenient for students as no time and money is spent travelling to and from the college. However if you prefer living off campus, you have to find accommodation based on its location.
Living too far from the college will only spell additional travelling expenses; so choose something within walking distance. Besides, the place you stay should be in close proximity, or offer transportation options to restaurants, boutiques, supermarkets and bookstores.
Don’t forget facilities while choosing student accommodation as it plays an important part in improving the quality of your life. Look for accommodation offering free internet connections, free cable connection, a free entertainment showcase and perhaps free access to the recreational area.
Today, wireless broadband connections are increasing in popularity when compared to the wired ones solely for its convenience. However, make sure you understand your landlord’s terms and conditions before getting a broadband connection. If possible, look for accommodation with kitchen appliances, bathrooms and washing machines.
The accommodation you choose should also have enough space for you to rest and study. Without peace and study space, you will not be able to maintain or even improve your grades.
Read the contract before signing on the dotted line
Not only should you be particular about finding the right accommodation for yourself, but also make sure its tenancy contract is clear and easy to understand. It is only if you thoroughly understand its terms and conditions you will then be able to enjoy a less stressful and troubled stay.
If you find some unclear terms or if there’s something you don’t understand on the contract, make sure you clear them and get all your queries answered before signing the contract.
These are the main points that will prove very helpful and useful for you in choosing the perfect student accommodation.
Finally, there is some good news in the markets of the UK home for rent, demand is now outstripping supply. These points to a positive future for the owners that their property should continue to be in high demand and this makes an upward trend in rent increases viable. Renting is a necessity for some sectors of the populations.
But rents and having a good property in a good location is only half the battle for any landlord, any property standing vacant is a drain on your resources so that is why investing in property that targets a high need sector within property makes senses.
One of the consistent needs that all major towns and cities have is student accommodation, the demand is high and this keeps rents at optimum levels, it also results in much less frequent periods of property vanities and that means that your property is a genuine investment, consistently working hard for you.
Get better rental income from letting your property, do not think that students are bad news, high risk tenants; they are actually making some good decisions about their future. Following the recent economic downturn, many young people have decided to pursue a degree or higher qualification rather than entering the labour market where good jobs are in short supply. There are now 2.4 million students in the UK, many of whom will be looking to let a property and that is a very buoyant market to say the least!
Over the last nine months, there was a 45% increase in demand for student housing and the trend should continue. By tapping into this market, the owners of the students can expect to see a better return on their gross investment.
In general, rents are higher for student properties that you can buy a comparable property to let – often by as much as 10%. An owner with the right kind of property in the right place for students can expect better returns on their rental income. It is expected that demand for student lets in cities such as Leeds, London, Manchester and Sheffield will continue to increase, making these ideal places for owners of student suitable properties.
Any owner will tell you that one of their main priorities is to maintain unoccupied periods to a minimum. One advantage of letting property to students is that the house or apartment will have tenants all year. In addition, the owner will be able to prepare and agree the next let months in advance if the property will be required for the following academic year, allowing you to plan ahead.
Student property is hot property and if you don’t have a student property on your portfolio yet then you should seriously consider adding at least one, they are a great investment!