2015 was a record breaking year for the student property investment sector. During the year £5.7 billion was invested in buy to let student accommodation, exceeding the previous peak of £2.7 billion in 2012 by an impressive £3 billion margin. The student accommodation industry has matured well and developed into an extremely popular asset class among new and experienced investors alike.
Why is buy to let student accommodation so popular?
The student property investment sector is thriving primarily because of changes in the student demographic. These changes are driving the demand for purpose built student accommodation and thus increasing the rental yields and returns that can be achieved.
The number of university applicants has been steadily rising following the initial decline in student numbers triggered by the 2012 rise in tuition fees. In 2015 there was a 2.1% increase in the number of applicants, fuelled in part by the government’s decision to lift the cap on student numbers for the 2015/2016 academic year onwards.
In addition to the overall increase in student numbers the number of international students has risen by 7% since 2014. International students typically seek out high quality privately rented student accommodation, so this is great news for investors.
What are the best student property investment opportunities?
The new generation of students are looking for modern purpose built student accommodation in prime city centre locations. The most popular student accommodation investments tend to be those found in major university towns and cities where student demand is out stripping supply such as Manchester, Liverpool, Leeds and Glasgow to name a few. These provide the most significant returns as well as the security of an easier resale and exit strategy for investors.
When considering any investment a substantial amount of care should be taken, which is why at New World Property Investment we conduct detailed and thorough due diligence checks to ensure that all of the investment opportunities we offer are both secure and lucrative. We also only deal with leading management companies and trusted property developers with proven track records.
Head over to our student property investment page to find out more, or get in touch with us today to discuss your options. We have a range of profitable buy to let student accommodation investments available, and on the back of a record breaking year are happy to introduce a brand new purpose built student accommodation scheme in the heart of MediaCityUK just minutes from Salford University in Greater Manchester.