Are you looking to invest in purpose-built student accommodation? It can be an extremely lucrative venture as long as you choose the right property in a prime location. This will ensure that you generate a significant amount of interest from students, while also benefiting from high rental yields, generous rental returns, as well as the potential for capital appreciation.
Take a look these top destinations where will you find the most lucrative student real estate on the buy-to-let market.
Durham: The city of Durham is home to one of the most prestigious universities in the UK and is currently ranked fifth in the University league tables. Attending this academic institution is a dream for many young hopefuls and is the main reason why the area is exceptionally lucrative. Investors can also achieve their goals by investing in purpose-built student accommodation in Durham, where demand is high and rental yields stand at 11.53%.
With such high yields and an affordable house price average of £167,574, it is no wonder that investors are flocking to this area to benefit from massive profits. They can also benefit from an increase in house prices, with Durham experiencing a 14 percent rise, which is expected to grow in the future. To benefit from this, investors should buy now in order to make additional profits in the future when selling the property on or upping the rent.
Manchester: This northern powerhouse city has experienced massive growth in recent years, especially in terms of population, as more students are looking towards the capital of the north for a prime education. In Manchester, over 99,000 students are attending the multiple academic institutes across the region, including the University of Manchester, Salford University, Manchester Metropolitan and more.
The majority of students prefer to live in proximity to their place of study, which is why companies such as RW Invest have based their developments in student-dense areas, allowing them to generate massive interest. By looking towards locations like Fallowfield, Rusholme, and Oxford Road you can ensure your investment is worthwhile and profitable, while also offering significant benefits for students.
Liverpool: Another northern city that attracts thousands of students every year is Liverpool, which has three universities that are highly ranked. This includes the University of Liverpool and Liverpool John Moores University, which are both located in the city centre. This is a prime area for student investment properties, especially in the L1 postcode, which covers the majority of the city centre including areas like the Baltic Triangle and the Ropewalks, which are popular with students. This is because they are in walking distance from their university and are also thriving areas with exciting nightlife, excellent eateries and more.
Some students opt to live further afield, as public transport is easy to manoeuvre in Liverpool. Investors can find success in the top postcodes L6 and L7, which have yields over 11%. These are primarily regeneration areas, so there is significant promise for investors, as they can buy affordable property which should experience a considerable amount of capital appreciation when the neighbourhood is fully updated.