A Comprehensive Guide to UK Student Property Investment 2021

Are you interested in investing in student accommodation? This type of property investment has proven highly lucrative in the UK, given the increasing demand for such housing. Property investors in this market are provided with an opportunity to invest in numerous UK buy-to-let hotspots like London, Liverpool, Edinburgh, Cardiff, Birmingham, etc. 

In order for you to become a successful real estate investor, you need to select the right property type and location. Make sure you hire a student property specialist to assist you in exploring the best options in the real estate market. 

The guide below will help you in becoming a thriving investor. 

Choose a property type

The real estate type is the inceptive thing to consider when making such an investment in the UK. Potential landlords have an opportunity to invest in purpose-built student accommodation (PBSA) or houses in multiple occupation (HMO). Nevertheless, HMO investments require lessors to obtain a license in case the property is rented to five or more lessees, forming more than one household.

Moreover, due to the expenses for obtaining a license, an increasing number of student landlords decide to invest in purpose-built student accommodation. PBSA is available in the form of studio flats and cluster flats. The former refer to small-sized apartments where the sitting room, kitchen, and bedroom form a large single room. In contrast, the latter is a type of shared accommodation where lessees have private bedrooms but share the bathroom and kitchen with the rest of the tenants. 

In view of rent, the sum is charged per student, which goes in favour of the rental yield. The more lessees occupy a house, the higher the yield. Naturally, the real estate location plays a tremendous role in the rent amount. Those properties located within a walking distance of universities are the best form of investment because of the high rent prices. 

Consider the location

The location of buy-to-let estates is a vital factor in property investments in the UK. Market research is essential prior to selecting a location in order for the investment to be successful. Those interested in investing in student accommodation are advised to purchase properties in university cities and towns, which are popular among students. Click here to check out a list of universities in England.

For instance, London remains the most attractive alternative for investors, but it requires the largest initial investment. Besides England’s capital, there is a multitude of other areas in the UK worthy of student accommodation investment in 2021 such as Liverpool, Manchester, Newcastle, Birmingham, Leeds, Edinburgh, Brighton, Cardiff, Sheffield, Nottingham and Bristol. For an idea of possible rental incomes with student accommodation search Rentola United Kingdom

Liverpool is considered one of the hotspots when it comes to buy-to-let properties in the UK, being home to over 70, 000 students. The average rental yield in this city is 5.48 percent, while the prices of real estate still remain affordable. In contrast, the Scottish capital has a population of over 34, 000 students. The average rental yield in Edinburg is lower when compared to Liverpool, being 4.05 %. 

Moreover, the capital of Wales is another hotspot, accommodating about 80,000 students. Even though the average rental yield in Cardiff is 3.79 %, the demand for such housing is constantly increasing. Nevertheless, the property prices in the Welsh capital aren’t as affordable as in some other areas like Liverpool. 

Consider the accommodation standards

After choosing the best area for such an investment, aspiring landlords are supposed to make sure their flats meet the accommodation standards. It’s paramount for the flats and houses to be fully furnished and pristine. Since students love socializing, these properties should have large kitchen or lounge areas, ideal for hanging out. 

In addition, besides the standard kitchen appliances, the flats should be equipped with useful appliances such as a dishwasher or a microwave, which facilitate the life of lessees. Also, regarding internet access, make sure it’s stable and free of charge. Free wireless will unquestionably make your accommodation much more appealing than those of competitors. See this link, https://www.forbes.com/sites/brandonturner/2017/12/09/13-principles-for-being-an-incredible-landlord/?sh=1c5790e93ddf, for some practical tips about being a good landlord.

Final word

If interested in such a lucrative investment, choose one of the UK’s hotspots to earn a high rental yield!