Property experts recommend up market student accommodation as an investment

[Nicholas Wallwork]

Investment in student accommodation is the big thing in the UK right now, with two billion pounds ploughed into the sector in the first three quarters of 2012 alone. However, market specialists, PDR Property Solutions, warn that not every bandwagon is worth jumping on.‘Despite being described as the most coveted property class, not all student [...]

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[Lysos]

Would these be the same experts who recommended buying in Spain, Bulgaria, Dubai, Cape Verde etc. ?.

The words 'experts' and 'property' should not be in the same article, never mind the same sentence !.

 

[TurnKey Landlords]

I think that this is good advice, though the higher end of student accommodation needn't be all that investors consider.

I feel that proximity to campus (or a bus route thereto) and amenities - a cheap supermarket, local shops and bars - will still be more of a deciding factor in the popularity of a student let, though the property should still be of a high quality and in good repair.

A leading mortgage provider released its complex BTL index for Q3 this month, and the figures for HMOs - which most student lets are - look promising. The average loan size and property value are down following a steady increase in the preceding three quarters, suggesting a shift to investment in cheaper properties, but the average rental yield stands at 11.1% - far higher than any other type of rental.

Another advantage to consider of student lets is that tenants tend to be second and third year students fresh out of campus, who will likely be looking for a two-year let rather than returning to their families for the summer.