September 3rd, 2014Student Accommodation News
As new students prepare to start their university life, the Telegraph has reported that a certain number of these students will actually move into accommodation which is still owned by their parents.
This is because some parents are now choosing to purchase new-build buy-to-let properties for their studious sons or daughters, instead of paying the high rents now required for their children to live in privately owned student accommodation.
The Telegraph believes that this is a canny move by parents, stating that they will not only earn rent through letting rooms to other students, but also make a profit because of the high chances of their new property appreciating in the upcoming years.
The publications’ property writer, Graham Norwood, offers a lot of advice for parents who are consider making this investment. Amongst other things, he claims that HMOs are no longer adequate for student living and advises parents to invest in new-build apartments which provide luxury features including high quality furnishings, en-suite bedrooms, and Wi-Fi.
Parents are also advised to purchase new-build apartments with two bedrooms to earn additional rent from another tenant, and to ensure that any such investment is located within minutes of a nearby public transport spot.
The final tip from the article endorses the use of letting agents when recruiting potential tenants. The Telegraph claims that this is preferable, as it makes your investment more hands-off, relieving parents of stresses such as finding or vetting tenants, chasing up rent arrears, and finding companies to fix things within the apartment.
This news for the private student accommodation market follows a host of positive news stories which have been published in the last few weeks. Arguably, the most positive of these is the 30,000 extra student places which have been created this year; this has brought the total of new students attending universities this year up to 413,000, increasing the number of potential tenants for investors.
Furthermore, the student accommodation sectors position as one of the country’s leading asset classes has recently been reaffirmed in a Savills report. The Savills Student Spotlight 2014 reported that average yields have now hit over 13%, and that they expect £2.5bn to be spent on student housing schemes in the upcoming year.
To read the full Telegraph article click here.