Student property purchases surge ahead of stamp duty hikeMake Text Bigger
The first quarter of 2016 has seen a surge in investors buying student property in order to beat the imminent stamp duty changes.
Investors have been rushing to complete their student property purchase by the end of this month to avoid the 3% stamp duty surcharge which will become applicable for second homes.
Research by the Mistoria Group has revealed that sales of student property in the North West has leapt by over 30% between January and March 2016 when compared with the first quarter of 2015.
More than 50% of student property investors are from the South, a third are overseas investors and 20% are from the Midlands and the North.
A spokesperson for Discount Landlord said: “Student property is attractive because it can offer good annual yields, low void periods and can be an easy to manage investment. However, landlords must be aware of what student tenants want.”
The top three most important factors and desires by students are safe and secure accommodation (89%), a good internet connection (88%) and a washing machine (76%).
These were closely followed by being close to a university campus (72%), high quality accommodation (59%) and being close to amenities (47%).
“If landlords are able to provide the right type of property, they will be able to attract a lucrative tenant type with high occupancy,” the spokesperson added.
Many universities are also anticipating an increase in enrollment over the coming years as a result of the removal of the cap on student numbers. This is driving demand for more high quality yet affordable student accommodation.
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