Student Investment Property in the UK

By Liam Bailey Created: October 9, 2012 Last Updated: October 10, 2012
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Investing in student accommodation has become incredibly popular with U.K. property investors, because it is property investment with much of the risk reduced by the fact that your tenants are predestined. 

Indeed, many of such opportunities come paired with one or more universities, meaning they are either already tenanted or will have tenants placed by those universities, giving investors a reliable and verifiable income stream. 

As with many trends these days, a lot of the hype in student investment goes to London. But as with anything in London, prices are much higher than the rest of the U.K., and much higher than many investors have the budget for. 

This is where secondary cities like Liverpool, Bradford, and Manchester come in, because they have reputable universities with growing populations of students, but investors can buy into student accommodation schemes at a much lower entry cost.

Look for Proximity

Students prefer their accommodation right on the doorstep of their university, not 10 minutes away or even a short bus ride away. Thankfully, opportunities like this do exist, including student halls that have been converted into individual student pods available for retail sale. 

However, not all that glistens is gold. Buying into converted student halls doesn’t necessarily mean the location is at your potential tenants’ doorstep. For whatever reason, the university it is linked with, or your catchment university, might be a bit away. So as always, do your homework.

Quality and Price

Something that will make a student travel that little bit extra is if the accommodation offers excellent amenities at a very cheap rent. A lot of the student investment opportunities in the secondary cities are 10 to 20 minutes away from their target school, or are hoping to catch students from several establishments. If you are buying into one such as this, check it out thoroughly: find out about the amenities, visit if possible, and find out what rents will be charged and how they compare to other options. 

Liam Bailey is a UK freelance journalist, he follows the work of Pure Student Property, specialists in student property investment in Liverpool.

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