September 6th, 2017
The ink is now dry from A-level results letters and jubilant students across the UK are hastily planning for student life up and down the country. Results were once again improved for students in England and Wales with A and A* grades breaking records.
There was a small drop overall in university places applied for but, once again, clearing saw huge demand as students vied for seats on courses, taking on the unenviable task of ringing around institutions to find themselves a place.
Student property on the whole, as an asset class, has seen another bumper year from this time last year. Capital appreciation, yields and demand are all high with landlords and institutional investors all increasing their shares across the board.
American, European and UK investment funds have seen huge investments into new projects in the likes of Birmingham, Glasgow, Manchester and other prominent university cities. Student pods and individual investments have also seen a sharp rise and the sector is currently one of the most popular investments across UK property.
With the new academic year fast approaching we’re going to take a look at the most valuable towns and cities across the UK for landlords invested and interested in the student market.
Recent research from online estate agent Emoov has analysed the top ten university locations for rental yields for residential and student property, and the list looks like this:
The results are perhaps unsurprising if we consider that those inside the top ten boast some of the most popular universities in the country. Nottingham, Leeds and Manchester have some of the most popular student areas in Europe, with Manchester in particular having the busiest student area across the entire EU.
Student numbers for all of these universities, at least preliminary numbers, all suggest another bumper intake for the 2017/2018 academic year, with applications high once again.
Levels of applications from Europe are also slightly down but international applications have remained largely steady so far.
Largescale projects for new student accommodation for more or less all of these locations are currently under construction and have already proved popular with investors.
Individual resales across the locations have also proved popular with ‘pods’ in Nottingham and Manchester particularly interesting for investors looking for relatively low cost, high return investment.
It appears that there is still going to be a lot of activity across these sites in the coming months and years as student property available vs demand for student property is massively imbalanced. Demand will increase for these types of properties, too, which leads us to the conclusion that the excellent performance of the asset class seen so far will find no reason to slow down now.