The student property market is a fantastic opportunity for people looking to invest, and with high demand accompanied with a lack of availability, now is the perfect time to invest.
There are many things to initially consider before investing, such as gaining market knowledge, being aware of rental provisions and also covering as much of the needs of potential tenants as possible. Finding the right property that will become a great investment takes a lot of time, research and consideration, all of which will help to find the most lucrative investment. Investors can expect to achieve great rental yields for their student property, although only when they purchase the right property in the right location.
Within the UK, the top three locations to purchase student property are Sunderland, Manchester and the Aston/Birmingham City area. The most notable reason for this is the average net annual yield percentage that the locations can achieve, with Sunderland having the highest average of 6.9%, Manchester with 6.73% and Aston/Birmingham City achieving 6.5%. In addition to this, Salford - located in Greater Manchester - also has high rental yields of 6.68%.
This makes the three areas perfect for student property investment and they possess all of the ingredients needed for a lucrative income. These universities are very popular amongst the student community, and so the demand for student housing is extremely high, creating a sense of stability that will appeal to investors when seeking the ideal investment opportunity.
Known as the best university in Scotland, the University of Edinburgh is ranked 6th best in the UK and is surrounded by houses of reasonable price but still high yields, proving it to be a fantastic student property investment within the UK.
Student properties in Edinburgh can expect to achieve an average yield of 5.6%, with prices for a one and two bedroom student flat close to the University at an average of £169,950 and an average rental yield of £800 per month.
A combination of high yields, fairly priced properties and a desire from students to attend the university ensures that student property investment within Edinburgh can become very lucrative for investors.
Home to the fantastic University of Manchester, of which is ranked 8th best in Britain and 55th in the world, Manchester has the largest student community in the whole of the United Kingdom with thousands of students across the three ranked universities.
This statistic alone highlights the need for local student properties that are likely to be constantly occupied, making it one of the best locations to invest in UK student property.
Manchester also achieves one of the best average yield percentages in the UK at more than 6.7% and a relatively cheap purchase price of £154,950, when compared to alternative investment destinations. It also has an average rental yield of £850 a month.
With four universities ranking in the top 40 universities in the world, London is a hub for higher education within the UK. Imperial College London (3rd in the UK and 8th in the world), University College London (4th in the UK and 15th in the world), the London School of Economics and Political Science (5th in the UK and 25th in the world) and King’s College London (7th in the UK and 36th in the world) attract large numbers of some of the best students from both the UK and the rest of the world to the city, creating a big need for student accommodation.
However, extraordinarily high property prices and relatively low percentage yields may mean that investors decide to stay away from investing in student property in London, despite the city being a higher education hotspot. With yields of approximately 3% and relevant property prices starting from an average of £900,000, it doesn’t make great reading for investors looking to invest in this area.
Possessing one of the best and most famous universities in the world and being such a beautiful location are just two of the factors that make the Oxford property market so hot. The university itself attracts continuously increasing numbers of students year on year, and so it is no surprise that property near the university is so heavily sought after.
With Oxford University right on their doorstep, properties within Oxford cost an average of £325,000 and can investors can expect to achieve average yields of approximately 4% on their property, with an average rental income of £1150 per month.
With Cambridge University sitting proudly as the second best university in the UK and fourth best in the world, thousands of students from across the globe aim to secure their place each year. As well as the fantastic university, Cambridge is booming as an economy, with thriving businesses within the tech and medical industries.
A combination of a world renowned university and a flourishing town ensures that property prices are slightly higher than in some other university locations, with an average of £340,000. Average yields for properties in Cambridge can be expected to be approximately 4%, with the average rent at £1100 per month.
Located in Coventry, the University of Warwick is ranked 10th in the UK and 82nd in the world, explaining why large numbers are attracted to undertaking their higher education at this particular university.
Prices of properties located within the area are amongst some of the lowest within Britain's top 10 university locations, at an average of £143,000. When adding to this an average yield of 5% and average monthly rental income of £598, it is clear to see why investing in properties near the University of Warwick is so popular.
Ranked 9th in the UK and 71st in the world, the University of Bristol is a very appealing university to students, especially after winning a UNESCO award for its Green Impact programme.
Such a high standard of university has attracted students from all over the world, generating a student body of 23,000, highlighting such a high demand for student accommodation within the area. After a 67% increase in the number of applicants from 2015 to 2016, there is a shortage of accommodation available to the students.
Properties located within the area have a relatively high average price of £250,000, although investors can expect to achieve an average yield of 4.4% and an average rental income of £925 per month.
When deciding upon their next property investment venture, Northern locations appear to be the best and most lucrative places for investors to make their investment. Not only is the north of the UK home to some of the best universities in the UK and the rest of the world but their locations offer up fantastic investment opportunities with reasonably priced properties and high achieving rental yields.
Recent research has showed that north cities of the UK possess 10 of the top 20 best buy-to-let areas. One of the most notable areas that could prove to be worthwhile for student property investors is Manchester, due to achieving a yield percentage of more than 6% and being home to three ranked universities. Affordable property prices in Manchester support the argument that Manchester is amongst the very best places to invest when considering student accommodation as the next great investment project.
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