UK Student Property: How to Invest in It

Without a doubt the student property market in the UK is lucrative to the investor who has taken time to study it. Property investment across the UK is a lucrative venture if done right as Middle Eastern, Asian and Arab investors have maintained their stronghold in some of the most expensive places to stay across the region, especially in London, Glasgow and other cities. These investors have made it quite hard for the ordinary UK investor to plunge into lucrative properties in certain cities due to the cost involved, which property owners inflate with a view to attract only a specific affluent clientele.

Student accommodation is currently the top most asset performing very well across the UK. The average yields are believed to have gone way beyond those of the buy-to let area of property investment and has continued to attract an investment of more than Ā£6 billion in about three years. This does not mean an investor can wake up one morning, invest in student property market and sit pretty as the money comes rolling in.

Just like in any kind of asset, the process of purchasing has to be done carefully to deliver the way you want. It is a profitable asset class and you can invest successfully but you need to know a number of things.

What kind?


What is more profitable? Family Home or purpose built?

The first thing you need to think about is whether to go for a family homes that you can let to student groups on a room basis, which is economical or try out your hand in purpose-built properties. With the family homes, a couple of students can rent it out; it is an affordable accommodation investment for a number of students at the same time.

Nonetheless, purpose built student accommodation properties come with lots of benefits. Students, for starters, are provided with higher and better living standards. These properties also occupy central locations and are very desirable and attractive to students. In the last few years, student preferences seem to have shifted from the family home accommodation set up to purpose built types.

Purpose built is arguably the most affordable entry point asset class for investors since one only has to invest in sole student unit. On the other hand, family homes require a multi-roomed residence that is complete to be bought. Apart from purpose built being affordable they also bring in higher yields, as high as 70 percent.

Who are the providers?

Currently, the demand for such properties has gone up as students numbers keep going up. Nonetheless, students are very choosy today and not every property aimed at this market will succeed. This is why you need to think a little bit about the provider. At least go with a provider who has a history of success in the student accommodation asset class since they are bound to have useful experience that will ensure your investment will always attract the kind of university students you deserve.


What kind of students do you want to attract?

What university?

Know the type of universities in an area you intend to invest in. Properties in cities or towns with universities ranked higher than others see the demand for student accommodation going up all the time. Ensure the property is located in a place easily accessible from the institution of higher learning. At the same time, a town that has many universities is a good bet as the demand for accommodation comes with higher intake of students.