In recent years, student property investment has become a very popular form of investment, with many UK student hotspots becoming some of highest yielding locations within the whole of the UK.
More and more investors are looking to student property investment as a higher yielding alternative to other buy-to-let opportunities, making the investment much more worthwhile. As is the case for any type of investment, location is extremely important to the success of student property investments, so you should spend time considering which location may be best for you.
Top Performing UK Student Property Locations
The percentage yield that you can achieve through your investment reflects the amount of profit that you might be able to make, thus showing how worthwhile investing in properties within the area might be. TotallyMoney recently conducted a survey into the average yields that UK locations can achieve, surveying 2700 UK postcodes and approximately 500,000 properties, in order to see which location may be the best to invest in.
The L7 postcode in Liverpool, covering places such as Edge Hill, Kensington, the City Centre and Fairfield, was found to be the best area for rental yields, achieving an average of 12.63%, with special thanks to relatively low average house prices and the ability to charge higher rental costs, combined with a very high demand. There are a number of different Liverpool postcodes shown to be achieving high rental yields, proving that Liverpool may well be a very good place to invest in student accommodation.
Further locations that were found to be achieving high rental yields include other student hotspots in the UK, including Nottingham, Sheffield, Cardiff, Manchester, Plymouth and Glasgow, all of which achieve average rental yields of more than 7%. These locations all have popular universities within the area, meaning that there is also a significant demand for student accommodation, of which is not currently being sufficiently fulfilled.
Manchester is one of the hottest university locations in the UK, with a student population of around 100,000 and a total of four universities, investors may be interested to know the city holds some of the highest average yields at approximately 8%. A combination of strong yields and significant demand for student accommodation has been attracting investors to invest in Manchester in recent years, and that trend is almost certain to continue for years to come.
Investing in Student Accommodation
There are a number of different factors contributing to how worthwhile an investment opportunity may be to the investor, making it difficult to truly grasp what your investment may return to you. Property prices can change, and new regulations are to be introduced to the industry, meaning that landlords should conduct extensive research into potential investments before going ahead.
Landlords should also consider different mortgage rates, different properties, ideal locations, and all associated information. The report, conducted by TotallyMoney, gives a strong insight into the potential returns of different locations, allowing investors to make informed decisions to take their investment process to the next stage.