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Where can the best student accommodation yields be found?

Where can the best student accommodation yields be found?

UK student accommodation investment is becoming more popular every year. The latest report from Knight Frank shows that global investment in the sector reached an all-time high of US$16.3bn in 2018, representing significant growth from the US$15.9bn of transactions recorded in 2017.

The UK is right at the heart of this booming sector, with a record number of applications received ahead of the 2019/20 academic year according to UCAS. This includes a large proportion of international students – those most likely to require high quality Purpose-Built Student Accommodation (PBSA) rented out by a private landlord. Furthermore, Knight Frank predicts that the overall undergraduate population will increase by another 15% in the next decade.

With low entry prices, high yields and reliable occupation rates, PBSA is a great investment option for any landlord looking to diversify a UK property investment portfolio. But where are the best locations to invest? Here are two particularly strong markets:

Chester

Located in Cheshire, close to the city of Liverpool, Chester is an attractive walled city which is home to approximately 20,000 students from as far afield as China, Qatar, India and Turkey. The University of Chester offers more than 400 different courses across a range of disciplines and has been the recipient of a Teaching Excellence Framework Silver award from the Complete University Guide thanks to the quality of its teaching.

Chronicle House is located in the centre of Chester with great access to both the university and all of the bars, restaurants and shops that can be found in the city. This prime location, along with on-site amenities including a gymnasium and games room, helps to explain why Chronicle House is so popular with student tenants – and why it is such a strong investment opportunity.

Prices from: £50,000

NET yields up to: 9.97%

Click here to find out more about investing in Chronicle House!

Middlesbrough

Another popular higher education institution with approximately 20,000 students, Teesside University is located in the heart of Middlesbrough on Britain’s North East coast. This historic town was at the centre of the global iron and steel industry for many years and, today, the university continues this legacy by specialising in science, engineering and design as well as branching out further afield into subjects as varied as computing, media and law.

Rede House is one of the most popular student accommodations in Middlesbrough thanks to its central location close to the town hall and on-site amenities including Sky TV and a gymnasium. Each student apartment is built to the highest standard and managed by a dedicated lettings agent. It is no surprise that the occupancy rates are so impressive at such a high quality development, with 99% of the development’s 237 apartments already booked for the next academic year.

Prices from: £37,500

NET yields up to: 7.84%

Click here to find out more about investing in Rede House!