The demand for student accommodation is as high as ever, with the need for property exceeding supply across Britain. A shrewd investor could see impressive yields, so let’s look at the best places to invest.
University of St Andrews
According to statistics, the best place to invest in student accommodation is near the University of St Andrews. This Scottish university can offer a yield as high as 12 per cent. A large house on the popular Largo Road will set you back around £300,000, but could see an annual income of £36,000.
At the bottom of the table sits Oxford, which is claimed to offer the lowest yield for investors at 3.3 per cent. A house on Iffley Road would cost around £720,000 and yield approximately £2,000 a month in rent.
Canterbury student accommodation is provided by companies such as https://canterburystudenthomes.co.uk.
Undeterred by Brexit, investments in student property are steadily increasing, with £5.3bn estimated to have been spent on student accommodation investment this year. This represents an increase of £1.9bn.
There has been a rise of 2.2 per cent in the number of applications for higher education from non-EU overseas students in the past year. There were 2.28 million students studying at higher education institutions in the UK between 2015 and 2016; therefore, there is a huge demand for student property in Britain.
Student accommodation in the north-west
Demand for student property in the north-west of England has risen by 38 per cent each year, with Liverpool deemed the best place to invest due to a shortage of available student accommodation in the city.
Offering shared student properties within Liverpool can create excellent yields for investors. Areas such as Wavertree, Kensington, Toxteth and Kensington Fields are ideal areas for investing in student property.
Investors could obtain a three-bed multiple occupancy house (HMO) of high quality for around £120,000 in Liverpool. An average room within a HMO is rented for around £85 a week with bills included. Rooms with en suites can be priced higher, at around £110 a week.
The investment return is very attractive at 13 per cent – five per cent capital growth and eight per cent cash rental; however, it is advisable to be cautious when looking to invest in individual rooms or student pods.