Student property investment stands strong as a lucrative asset for prospective buy to let investors. Healthy yields and robust returns can be obtained through renting to the student market, however, many are still reluctant to diversify their portfolio to accommodate for the perceived ‘hard partying and unreliable’ tenant type.
Bustling major cities with links to established universities are a good place to start for any property investor, even for those not looking to necessarily rent to students, as you are more than likely to find an incessant stream of graduates and young professionals looking for lettings upon completion of their studies within the area.
For many years binge drinking, a hatred of cleaning and an incapability to manage their money
formed the typical reputation for any student. However, do they really pose a bigger threat than reward when it comes to renting out your property?
A new league table produced by Simple Landlords analysed the best hotspots within the UK placing a significant focus on which universities are associated with the highest performing yields. Durham, Warwick and Manchester were named as the top three spots with the average annual return for a landlord owning a Durham student property at 11.5% per year, followed by Warwick at 10.25% and Manchester at 8.48%.
Student property shines as a profitable asset class and according to predictions by Savills, investment in student accommodation was forecasted to rise in by 17% in 2017. Overseas students moving to the UK aim to take advantage of the premium facilities on offer, therefore adding to the lack of supply in student housing which in turn push rents up, which is great news for investors.
Manchester has gained a positive reputation over the years for producing healthy rental returns, due to the ambitious regeneration schemes transforming the city, convenient links via rail, road and air which attract commuters, and a plethora of world class educational facilities that are easily accessible.
Regardless of the high returns that can be easily achieved with student lets, many landlords view this tenant type as having larger risks involved and according to research performed by YouGov, 40% of those surveyed said they would not rent their property to students.
Investment opportunities for those landlords who venture into the student property realms can receive major benefits besides from the potential for higher yields. Demand is always prevalent as the UK’s student body is dramatically multiplying year upon year. As student numbers flourish, this decreases the risk of void periods compared to other tenant types as students actively source properties for a full academic year and are tied into a contractual agreement for the duration.
RW Invest property investment specialists based in Liverpool, offer a diverse range of buy to let student properties in numerous investment hotspots throughout the UK. High rental yields and prosperous opportunities for capital growth are evident across the premium quality developments RW Invest provide, as well as welcome additions to diversify an existing property portfolio or step on to the property ladder as a first investment.