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Student hotspots – Where to invest

Student hotspots – Where to invest

As the New Year approaches and landlords begin to look towards their portfolios and potential investments for the next twelve months, we have taken a look at some UK student investment hotspots both established and emerging.

With student property investment becoming ever more popular, there is a serious demand for high quality and profit-turning student investments. The big cities are established and well-worn markets, but there is always value to be sought in both traditional and new locations across the country as more and more students look towards living privately rather than in traditional university halls.

Private investment has already brought about a speedy improvement in student living standards but don’t be fooled – this has been driven just as much by student demand. With student loans now being used more wisely than ever, eagle-eyed students are constantly on the lookout for the best return on their limited money.

Birmingham

Birmingham is in pole position for rental returns o student property investment, according to Zoopla. In recent years, 57,115 full-time students were in the city which is home to three universities and average rents have risen 15 per cent in two years.

Average yield: 7 per cent

Nottingham

Nottingham is home to two of the UK’s leading universities and, with two-bed flats available for approximately £112,000, there are some bargains to be had. The market for student property in the city has exploded as the high-ranking universities host more and more students every year.

Average yield: 6.4 per cent

London

The capital is seen as one of the most stable places to invest, not least because it continually outperforms the market during tough times. There are many universities in the city and a plethora of wealthy overseas students, meaning that there is excellent value to be had from investing in the leading UK city.

Average yield: 6.4 per cent

Coventry

In the last academic year, 35,265 students attended Coventry University or City College Coventry. In addition, the University of Warwick has campuses near Coventry, further expanding the student tenant pool. Two-bedroom residential properties in the area are on the market for £109,904 with student properties representing much better value.

Average yield: 6.4 per cent

Glasgow

A two-bed flat in the city might cost you a mere £108,106, reflecting the value to be also had in the student property market. A high percentage of graduates actually choose to stay in the city or surrounding areas after completing their studies, which means the city has a thriving young professional market.

Average yield: 6.2 per cent

York

The city boasts 15,782 students and great transport links, with London and Edinburgh only a few hours away by train. The university is also undergoing an expansion.

Average yield: 6.1 per cent

Oxford

Although property prices are second only to London in the top 10 at £230,863 for a two-bed flat, rents are high at £1,166, so student investment in the area are emerging as a new and popular alternative

Average yield: 6.1 per cent

Manchester

There are three universities in the city, catering for over 85,000 students. With demand significantly outstripping supply, Zoopla’s yield estimate could be on the conservative side.

Average yield: 5.8 per cent

Leicester

Leicester has, possibly, more realistic house prices than many other university cities at around £115,980 for a two-bed flat, with student investment properties averaging approximately half that.

Average yield: 5.8 per cent

These cities may not all be in vogue for property investment but as demonstrated above there is some outstanding value to be sought in established and emerging student markets. With 2017 promising to be an even bigger year for student landlords, there should be exciting and profitable opportunities for landlords willing to find them.