As we come to the end of 2018 and look forward to the new year it is a time to take stock of investment portfolios and strategise for the future. Whilst the larger residential market looks more uncertain, the student accommodation investment market is stronger than ever, with Knight Frank predicting that the sector will be worth £53bn in 2019.
Combine that with the Accommodation Costs Survey 2018, which found student rents jumping as accommodation goes upmarket, and it is clear that the sector is strong and has a bright future.
With that in mind, here are our top three deals to look at in preparation for 2019:
Rede House – £36,500, NET yield of 6.8%
Rede House is a premium student accommodation development located in the heart of Sunderland, close to both the city centre and Teesside University. This means that students are close to everything they need from day to day, and most will pay extra for this level of convenience.
The development itself is let and managed by a professional agent and includes high quality on-site amenities such as a gymnasium, social area and cinema room to further add to the appeal. Consistently high tenancy rates speak for themselves.
X1 The Edge - £65,000, 7.3% NET rental assurance until 2020
Liverpool is one of the UK’s most highly regarded university cities thanks to world-class standards of teaching and a social scene that is amongst the very best on offer. In addition, the city is globally famous meaning that international students – those most likely to want high quality private accommodation – are eager to go to Merseyside for their higher education.
X1 The Edge is one of the city’s most popular accommodations thanks to its stunning student apartments and a location that could not be more central. Tenants have a range of amenities in the building to take advantage of and benefit from X1 Lettings, an award-winning lettings agent, being on-site to take care of any problems. The development is currently 100% let.
St. Ann’s Lodge - £53,000, 6.6% NET yield
The University of Leeds is one of the best universities in the world and attracts tens of thousands of students from around the world each year. The city itself is equally impressive, being equally comfortable as a home for industry, the arts, sport and much more.
St. Ann’s Lodge is located close to the city centre and is the perfect base for students attending any of the city’s higher education institutions. Between the high quality of the apartments and the convenience of the location and local amenities it is no surprise that St. Ann’s Lodge is so popular year on year. Lettings and management are taken care of by PRIMO Property Management who have a proven track record and a national portfolio.