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Investment hotspots for the new student year

Investment hotspots for the new student year

Summer is fast approaching and many students are now planning on returning home with their belongings ready to look for next year’s accommodation or, failing that, seeing out their lease and getting summer jobs to top up their income in lieu of student loans.

As the trees blossom, the birds chirp and daffodils sway in full bloom, the approaching end of Spring isn’t just important for fashion houses launching their new ranges but also for student landlords weighing up their next move and looking for the next opportunity to delve into the market.

Many will be gearing up to see which university they have been accepted to and with it, looking at potential accommodation. There’s money to be made and we think we know where the biggest opportunities are.

As a general piece of advice, look no further than the North for the cities and regions that are going to be attracting the highest numbers of students from across the country and, most importantly, the highest number of 18 year old first time applicants.

According to UCAS data, applications from 18 year olds have increased by 43% in Yorkshire and Humberside, 40% in the North East and 39% in the North West over the last decade. If we compare this to the South East at 28%, the South West at 27% and Wales at 19% then we can see a marked difference in the amount of fresh faces that each region is attracting.

As a student landlord your bread and butter is likely to be 18-20 year old first time students who are looking for private accommodation in reliable developments. This, therefore, is a huge indicator that the North of England represents the most attractive areas for students.

Manchester

Outside London, which remains horribly expensive, Manchester remains the UK’s top student city.

The city’s three main universities are highly thought of across the world and make Manchester a significant hotspot for landlords looking to invest in student accommodation. An international hub of business, culture and sport, Manchester offers a lot to students its status as one of the UK’s top student investment hotspots is unlikely to be challenged anytime soon.

Newcastle

The North East offers a plethora of opportunities for young students, and with a number of top universities and colleges as well as a wide variety of courses Newcastle tends to be widely considered the ‘capital’ of the student North East.

There are already plenty of landlords now entering the student property market, jostling with large multinationals which are planning significant developments. There has been some pushback from the local community which regards the speed at which student property is being constructed to be too fast.

It is difficult to stop this trend however as capital appreciation and rental yields in Newcastle remain very high, a fact which will inevitably draw investors. The universities in the area attract large numbers of students and tend to do well with wealthy young students from across the South of England looking for an experience far away from home.

Newcastle is an established area that has a lot of interest right now and is ripe for investment before every man and his dog has decided to snap up student property. Anybody entering the market now should be able to make the most of a five to ten year investment strategy to turn a tidy profit.

Sunderland

Continuing the North East theme, Sunderland has emerged as a seriously popular alternative to some other Northern giants. The quality of local private accommodation has really grown in recent years and we’d class Sunderland as an ‘emerging’ city which investors can expect to hit the mainstream within another five years. Capital appreciation and rental yields are both strong across the city and student numbers are increasing year-on-year. The city itself is going through significant regeneration and all the aspects of life which students look for are being improved every year – transport, amenities and nightlife.

Prospective landlords, investors and students can all expect Northern cities like the three referenced above to be king for a long time yet.

Looking to invest in student property in the North? Get in touch today for more information on our available properties!