Year-on-year demand for student accommodation continues to rise about 30% faster than the number of beds that are being developed.
This inflated demand means that yields are high, investment opportunities are plentiful, and they make an excellent first investment, or addition to a diverse property portfolio.
According to research by the Higher Education Policy Institute (HEPI), student numbers in the UK are estimated to grow by a further half a million by the year 2030. In fact, the UK is the second-largest market for purpose-built student accommodation, coming second only to the US. With the UK becoming an increasingly popular location for overseas students and the increased demand for high-quality, purpose-built, accommodation, the student property market has proven to be a lucrative investment for UK-based and overseas investors alike.
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What is Student Property Investment?
Student property investment involves purchasing of accommodation with the intention of renting it out to student tenants and creating a stream of income through regular rent payments.
There are two main types of student properties to invest in:
Purpose-built student property (PBSA)
A purpose-built student property that has been built specifically for students to live in. These are either self-contained studio or “cluster” flats with private kitchens, but shared living spaces, or modern halls of residence with ensuite bedrooms and shared kitchen, dining, and living facilities.
Shared student house (student HMO)
A shared student house where multiple students live and share kitchen, bathroom, and lounge facilities. HMO’s, by definition, are rented out to three or more people who do not form a single household.
Here at Sterling Woodrow, our area of expertise lies within the PBSA property market. The PBSA property market is one of the most lucrative investment types available at the moment. They represent a highly manageable asset class which can be a successful investment strategy for first-time investors looking to establish their portfolio, or experienced investors looking to diversify.
The Sterling Woodrow Offering:
Hands-off Investments
Our senior portfolio managers handle everything whilst you receive your return on investment
High Yield Returns
Generate returns of up to 10% assured for up
to 5 years.
Capital Appreciation
Student investments have the opportunity for capital appreciation over time.
Why Invest in Student Properties?
Whilst many first-year students choose to live in halls of residence, research by the National Union of Students in 2019 uncovered that there simply isn’t enough space for every student to reside in university-owned accommodation throughout their education. In fact, just over half of the student population (54%) are renting rooms or houses from private landlords or estate agents.
Further to this, In 2017-2018 there were 458,490 international students studying at higher education institutions in the UK, accounting for 19% of the total student population. Whilst the current economic situation forecasts a drop in the number of overseas students studying in the UK, this is a short-term projection making student property investment an attractive acquisition now and for the future.
This places significant demand on the property market to supply high-quality, private, student housing for students at all levels. Due to the level of demand, it continues to be seen as a defensive asset due to its stable income profile.
This is where our senior property investment managers can help you discover the most profitable locations to invest in residential student property. Our aim is to provide you with the best return on investment and do the hard work for you.
What some of our clients have to say…
I’m originally from Leeds but now live in Australia working as a university lecturer. It’s always been our aim to ultimately move back to the UK so I’ve taken an interest in the UK property for many years. I’m also very aware of the lack of accommodation for students close to major universities. A friend recently put me in touch with Sterling Woodrow and it was instantly apparent that these guys knew their market so my wife and I finally decided to invest.
David Johnson
First time investing into a fully managed investment. I made an enquiry online boasting 10% returns per annum. Within a few days I received a call from one of the portfolio managers Ben, who was extremely helpful and wanted to understand more about my goals and what I wanted to achieve than actually trying to sell the product which was a breath of fresh air. I received all the info and had lots of questions regarding the Hotel Investment, all of which he answered simply and easy to understand.
James Tingley
Whether you live overseas or in the UK if you want to invest in property it’s important to find an agent that will go the extra mile for you and that’s exactly what Sterling Woodrow did for me. Although I knew a lot already it was still good to have those guys available when I needed them and it didn’t cost me anything.
Mohammed Alkhaiwani
Where Should I Invest in Student Property?
The location of your student property investment plays an important role in the venture’s overall success. It has to meet the demand for students, be in a convenient location to a university whilst also offering high rental yields to investors.
Our portfolio managers keep their fingers on the pulse of the UK property market at all times; tracking predictions for property prices, trends, and demands and constantly thinking into the future to deliver you the best return on investment. In the current climate London property prices are set to suffer following Brexit and coronavirus, but student hotspots in Liverpool, Manchester and Leeds look to remain strong and stable; a ripe investment opportunity.
Want to know more about our investment opportunities?
Book a complimentary consultation with one of our senior portfolio managers today.
How Can I Buy Student Property?
Whether you are a first-time or experienced investor, the expert team at Sterling Woodrow is here to help you. Founded in 2005, our team has over 75 years’ collective experience in property investment. If you are short on time, but eager to invest in property then our hands-off investments
Request a callback from one of our senior property investment managers today and enjoy a free complimentary consultation. Our team will take the time to discuss with you your investment goals and offer help on how best to approach your investment to achieve those.
Invest in Student Property with Sterling Woodrow
Whether you are a first-time investor looking to understand your options and make the first steps towards building your portfolio, or an experienced investor looking for someone to effectively manage your investment, our team goes the extra mile to deliver exceptional service and results.
If you are ready to take the next step and learn more about the student property opportunities available through Sterling Woodrow, contact us today and we’ll start your investment journey together.
Student Property Investment FAQs
Student property does have a higher return on yield than many other property investment strategies due to the greater chance of rental income as a result of fewer void periods and increasing demand.
Student property is one of the best investments that a first-time property investor can make. This is because property prices are much lower compared to residential property, and the rental yields are high providing you with regular rental returns.
Any investment that you make does pose a small risk. We always recommend that prospective investors have an experience manager on hand to guide you through the entire process. Our team of senior portfolio managers are experienced in finding tailor-made investments for our clients in the UK and abroad.
Discover more about the market research, benefits and risks of student accommodation investment in our in-depth guide, “Is Student Accommodation a Good Investment?”
Yes, absolutely. Overseas investors can purchase student property in the UK, even if you do not live in the UK.