Student accommodation blocks are now common sights in university towns and cities across the country. They’ve signified a move away from the traditional, tenement-type student digs, offering a sleek and secure way of living favoured by modern students.
Shrewd investors have been quick to spot their potential in recent years. They provide an attractive and often low-cost route onto the property ladder, with guaranteed enquiries year on year. Students will always need somewhere to live, particularly in areas close to their campus or local amenities.
In 2017, this demand will only grow as student numbers rise. Over 408,000 are currently on undergraduate courses, complemented by over 90,000 postgrads – an increase of 22 per cent from last year.
Purpose-Built Student Accommodation
The number of students living in private sector purpose-built student accommodation (PBSA) has increased sharply in recent years, making it one of the only property subdivisions to deliver positive rental growth every year since 2007.
Undergrads are increasingly looking towards more luxury accommodation in the modern era, preferring en-suite bedrooms, spacious common rooms and exclusive high speed Wi-Fi connection. Some developments even include games rooms and multi-gym facilities.
The market alone comprises assets worth over £40 billion, with the potential to rise even further over the next decade or so. Average rents have also risen in this time, generating around £150 per week.
By placing the purchase in the hands of a professional lettings agent, all the usual hard work and hassle of managing the property is taken care of. For the student sector in particular, this knowhow is especially valuable as the turnover of tenants is relatively high.
For example, as a private investor, you may not be able to deal with a flood of enquiries towards the start of term time. Aspen Woolf will take care of this on your behalf, answering questions from prospective tenants and vetting them in the correct manner.
Students also trust this approach more, knowing they won’t be left stranded with an unreliable or uncontactable landlord if something goes wrong. Any maintenance issues will be dealt with by us, along with regular inspections and inventory stock-takes.
At Aspen Woolf, we only offer properties from the UK’s student hotspot’s such as Manchester, Huddersfield, Liverpool, Edinburgh and Plymouth. This assures your investment won’t be wasted as tenant demand is guaranteed every year.
We also look for universities with a high percentage of international students. This is because they’re often drawn to the PBSA due to its secure and more luxurious nature. Liverpool and Edinburgh Universities, for example, boast around a 30 per cent foreign student intake.
Student property remains a safe bet in 2017, especially purpose-built student accommodation managed by a professional estate agent. You’re getting a hassle-free and relatively low-risk way onto the property ladder, with typical yields of 7% – 10% with no signs of slowing down.
You can take a look at our student accommodation opportunities here.
If you’d like to talk through potential investments or have any questions, get in touch.