In the last ten years, student housing has become a very popular property investment option for those looking to invest in in the UK. It every-growing market offers a whole host of upsides for those looking for a stable ROI.
First off, the industry expanded rapidly as a result of the government lowering the cap on the number of universities in the nation. This allowed institutions to accept a higher number of students, which increased their revenues.
Second, due to the rise of purpose-built student accommodation, or PBSA, investing in this asset class has become much more professionalised in recent years. As a result, investors can now earn higher yields and rental income from modern, high-quality student flats and apartments, which command higher rents.
Thirdly, there is a constant demand for suitable accommodation. This regular stream of new tenants lowers the risk of void periods and provides a stable stream of rental income.
In addition, the UK is known for providing excellent education, which draws in students from all around the world. The diversified student body that results from this appeal on a worldwide scale adds even more stability and durability to the market. Since international students are frequently ready to pay a premium for well-maintained and conveniently located houses, the influx of these students also presents an opportunity for better rental returns.
Furthermore, the government has consistently provided support to the higher education industry. Studying in the UK is becoming more and more appealing thanks to policies and initiatives like loosened immigration regulations and more financing for colleges. Together with the nation's stellar academic standing, this guarantees a steady demand for student housing and a favourable investment climate.
Property prices in university towns and cities typically rise steadily because there is a constant demand for and a restricted supply of acceptable housing. This increases the total return on investment by giving investors the chance to profit from both rental income and possible long-term capital gains.
If you would like to know more about investing in student property, get in touch with a member of the Elavace team today.