UK student property market still growing

by Jason McClean

15:06 PM, 16th July 2015
About 3 years ago

UK student property market still growing

Make Text Bigger
UK student property market still growing

The UK student property market is continuing to grow and provide landlords with healthy yields, according to latest figures.student

Investment in student accommodation hit £3.98 billion in the first half of 2015, well ahead of the £2.35 billion for the whole of last year.

The research from commercial property and real estate company CBRE, also revealed that London saw a record £1.98 billion worth of transactions across the first half of the year.

London saw the fastest change in student housing yields in the whole of the UK, with yields now at 4.75% – levels not seen since 2007.

The constrained supply of student housing across the UK means a number of students are chasing the limited stock of suitable accommodation in most University towns, according to CBRE.

Student accommodation often has lower capital values per square foot than residential stock, making it more accessible for many investors.

“Many investors are attracted to high yields that the student accommodation can provide, which are often higher than those of residential stock in the capital,” said a spokesperson for Property 118s landlord insurance providers Discount Insurance.

“Upward rents and capital values will continue to make the market an attractive proposition for investors, as long as demand outstrips supply.

“We recommend that those landlords looking to get into the market, do their homework first to ensure that they choose the right region in which to invest,” added the spokesperson.

banner1



Comments

Neil Patterson

15:21 PM, 16th July 2015
About 3 years ago

Student properties were always very popular for having a good yield back in the days of when I used to do BTL broking 🙂

Mr B2L

11:12 AM, 17th July 2015
About 3 years ago

All of our residential rental properties are student homes and we get very good rental yields from them. People skills are a must I might add.

Anyone else bit into student lets? If so then please get in touch - would be good to network and have a chat 🙂

G Cox

13:28 PM, 17th July 2015
About 3 years ago

Need for care. Each town/city is a special case. I am selling up in my one property Canterbury as the new private blocks have drained demand from traditional BTL properties.

Likewise, much is being built/refurbished in certain cities so that over-supply may be an issue. Student demand is stable or growing only very slowly in some university locations. That does not mean that an investment in a new/ 'refurbished very well located' BTL won't prosper of course.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Millennials stumble on the Property Ladder

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More