September means that it is that time of year when students will be starting university or college. If you are looking to invest in a student accommodation property, then this time of year would be perfect for your investment. Generally, student tenant swill be moving in around the end of August all throughout September.
What Is Purpose-Built Student Accommodation?
Student accommodation no longer means small apartments with poor quality living. Students nowadays are looking for accommodation with higher specifications, a prime location and a variety of amenities. Purpose-built student accommodation answers that demand. In the UK, many students are willing to pay slightly higher rent for better quality apartments.
Purpose-built accommodation provides facilities that students need such as common rooms, computers, gyms and WiFi as well as being in close vicinity to town centres, the university, shopping centres and nightlife. It provides a more luxurious lifestyle, which is increasingly popular amongst overseas students.
Where Should You Buy A Student Property?
Typically, the most successful student accommodation investments in the UK are close to universities and educational institutions. Historically, locations such as Manchester, Liverpool, Sheffield and London have been seen as student investment hotspots.
However, areas such as Huddersfield, Leeds and Nottingham are also up and coming with a high population of students and more than one universities and colleges in the area. Birmingham has a high rental yield with an average of 7% per annum. Nottingham, London and Coventry come second with 6.4% average rental yield.
The Buying Process For Purpose-Built Student Accommodation
Investments for purpose-built student accommodation are cash only purchases. This is mainly because this asset class is a fairly new investment, so banks and mortgage lenders don’t offer specialist student investment mortgages.
Student accommodation investments can start from as little as £45,000 with a net income of 7%-9% per annum depending on the location you choose to target and the property. If you are buying a student accommodation unit, you should speak to a solicitor to discuss legal costs and requirements. You can also choose to consult a property investment broker to find the best deals on your student accommodation investment.