UK student property investment has emerged as the country’s best-performing asset class over the past 12 years, offering investors higher rental returns than traditional buy-to-let investments.
Town Square Invest’s Ultimate Guide to Investing in UK Student Property in 2021 explains the pros and cons of investing in the sector and outlines exactly how you can start generating a passive income from this profitable market segment.
You will learn about the current state of the market, what the future holds for the higher education system and where you should consider investing.
5 reasons to invest in UK student property
- High demand – According to UCAS, there are around 2.4 million students enrolled in higher education in the UK, and with this number to climb by an additional 500,000 students by 2030 (JLL), there is a genuine requirement for suitable housing.
- Education excellence – There are 90 UK universities in the QS World University Rankings 2021 (6 more than last year), plus 4 UK universities are ranked the global top 10, with a further 4 in the global top 50.
- Portfolio diversification – PBSA offers investors higher yields, a lower purchase price, and exceptional value for money when compared to residential buy-to-lets.
- Fully managed – As purpose built student accommodation is managed by a specialist management company, investors will secure a reliable passive income with no work required.
- Mainstream asset class – The UK’s PBSA segment is now worth over £51 billion (Knight Frank). Its increasing popularity has seen it rise from a niche option to a mainstream market segment in a short time frame.
Where is the best place to invest in student property?
Investors considering student property should always consider the location of their property – a development located too far from campus may lead to lower occupancy rates. A development that is within walking distance from the campus will always prove popular with students.
A well-located project will attract the interest of experienced management companies who will take care of the day-to-day running and maintenance of the investment.
Consider what will make your investment stand out from the crowd. On-site facilities, distance from the campus, and value for money are all important considerations for the end-user and they should also be on the radar of investors.
Lancaster is home to over 18,000 students and hosts two higher education institutions: Lancaster University and The University of Cumbria’s Lancaster campus.
Lancaster University is among the best the UK has to offer. Consistently ranking in the top 10 of all three major national league tables, the institution is also within the top 1% of universities globally.
In addition, Lancaster sits 3rd for graduate-level employment in the Times and Sunday Times’s Good University Guide 2019. What’s more, the student population has increased at a rate of 16% per annum since 2008/09 – well above the national average of 12%. View student property for sale in Lancaster…
Newcastle is home to two higher education institutions; Newcastle University and Northumbria University. Between the years 2000 and 2015, Newcastle University saw its student numbers grow by a staggering 70%, hitting more than 21,000. This amazing rise was even bettered by Northumbria University, which saw its volume of students climb to 27,800 in 2015, a rise of more than 110%.
There is a high demand for student rooms in Newcastle, with 64.6% of students unable to access university or private sector student accommodation. This large undersupply of rooms has created an ideal environment for rental growth. A property in the city’s centre and within walking distance of both university campuses (which are conveniently located close to each other) will appeal to the local student market. View studio apartments next to Newcastle university…
Download your 2021 UK Student Property Investment Guide
Simply follow the link to access your copy of Town Square Invest’s Ultimate Guide to Investing in UK Student Property in 2021.