It has been another excellent year for student accommodation with millions of pounds worth of investment being poured into the sector to try and bridge the gap between supply and demand.
Rental growth for student property has increased by 2.55% for the 2017/18 academic year according to Knight Frank, suggesting that the sector has a big future ahead. As this year draws to a close, we have rounded up the next student property hotspots for 2018.
A city that has been under the spotlight this year is Liverpool. Investors have been piling in to take advantage of the strong appetite for student accommodation investment in the city, which has been driven by a shortfall of student beds. New research has found that last year, there were 60,000 students studying in Liverpool, an increase of 20% from the previous year. It is estimated that 60% of these students require accommodation in the city.
This means that if you are looking to invest in student accommodation in the city, you are likely to benefit from high occupancy rates, especially if you decide to purchase property close to the universities and near the city centre.
Nottingham is another burgeoning hotspot to look out for in 2018. It was Liverpool’s closest competitor this year in the wider buy-to-let market, offering rental yields of around 5.6%. The city is home to two well-renowned universities with a student population of more than 55,000.
According to recent reports, the number of student properties have increased by a third in the last 6 years alone to try and keep up with the growing student population.
Councillor Jane Urquhart, portfolio holder for planning, housing and heritage at Nottingham City Council, said: “Nottingham is a thriving city with two great universities that attract students from all over the world contributing over £1bn to Nottingham’s economy each year.
Manchester is also one of the premier student property hotspots, with two world-class universities and the largest student community in the UK. The city offers excellent choices for student accommodation investment with low entry prices and high yields.
The city has been obvious choice for investors looking for the best returns from property investment in previous years, but with the growing student population, appetite will only increase. The universities are also struggling to keep up with demand, which means rental growth will remain stable and void periods will be limited.
Despite political and economic uncertainty, higher education remains unaffected which means that student accommodation will continue to be in demand in the upcoming years. 2018 is a great year to invest in student accommodation – take a look at our range of fantastic units located in the top hotspots.