The last few weeks have been some of the strangest and most uncertain in recent times. Coronavirus, or COVID-19, has completely taken over the world. You can’t switch on the news or scroll through the internet without seeing people talk about the disease, it has changed life as we know it for so many for the immediate future. The UK is currently in lockdown, people are having to work from home or not work at all and all non-essential stores, pubs and restaurants have been forced to shut for the time being.
Markets around the globe have dropped off, however The UK property market has remained steady throughout the pandemonium. There is evidence coming in via mortgage applications and house sale data that investors are jumping on the chance to invest in such a stable market.
These truly are unprecedented times, however despite the uncertainty property investors are still looking to add to, or begin, their property portfolios. One of the most prosperous investment opportunities, even before the outbreak, is student housing investment – in particular, purpose-built student accommodation (PBSA).
Student accommodation offers a fantastic investment option in the current climate thanks to its cash to cash market and high yielding returns. No banks are involved with the purchase, resulting in a quick and easy turn around with conveyancing. PBSA is popular with serial investors who are looking for pure rental stream, assessing their investments every 7-10 years.
Given that student accommodation is a long-term investment option, investors can expect to continue to reap the rewards from investing in PBSA long after the current situation passes. For years UK universities have been struggling to deal with the increasing demand for students in the country. Universities can only offer a limited supply of accommodation for their students, and with the number of students in the UK continuing the grow, thousands are being forced to rent privately.
The market is currently worth £5.2 billion, and the long-term outlook for student housing in the UK remains positive. The student housing sector proved itself to be one of the most lucrative property investment options, as it continued to retrieve high yields for its investors along with continuously high occupancy rates.
Some of the best student investment hotspots include:
Liverpool - Liverpool is one of the UK’s fastest growing student areas, with the student population growing by an impressive 208% between 2001 and 2011.
Sheffield - The city is one of the most attractive student accommodation investment locations in the entire country thanks to its two top tier universities and the city being one of the most vibrant and creative places for young individuals.
Leeds - The student sector in Leeds is thriving, growing year-on-year across the city’s two main universities
Nottingham - home to a substantial student population thanks to its two top tier universities, with over 60,000 people estimated to be studying in Nottingham.
The uncertainty surrounding the current climate can be worrying for potential investors, however student accommodation investment continues to offer an easy and awarding investment. If you’re interested in investing in one of the UK’s premier asset classes in the buy-to-let market, get in touch with us today.