Investing in student property may not sound like the most exciting investment choice, but we’re here to change your mind. The UK's student population is growing at a rapid pace, with a record number of students being accepted into universities every year.
In 2022 alone, the UK saw its second ever highest record of undergraduate university students, with UCAS accepting a total of 767,000 at a total increase of 44% from the previous year in 2021. Nearly doubling the demand in student accommodation, this type of property investment is fast becoming a lucrative goldmine for investors.
One of the most attractive benefits of investing in student property is the potential for high rental yields. Unlike traditional buy-to-let properties, landlords can charge premium rents for student accommodation due to the high demand, while also buying at a typically lower price point than most types of property, seeing a higher return on their investment.
But it's not just about the money. Investing in student property can also be a satisfying experience. By providing high-quality accommodation for students, you are contributing to their overall university experience. And a positive living experience can have a significant impact on a student's academic success and overall well-being. Create a win-win scenario for both the investor and tenant where not only can you potentially see a high return on your investment, but you can also make a positive impact on students' lives.
Of course, there are some challenges that come with managing a student property. But these can be mitigated by using professional property management services, which can handle everything from finding tenants to managing repairs and maintenance. This can free up your time and allow you to focus on other aspects of your investment portfolio.
And let's not forget about the potential tax benefits.Landlords can claim tax relief on mortgage interest payments and maintenance costs, but student property can also provide additional tax benefits if it's classified as a House in Multiple Occupation (HMO).
If you're looking to diversify your investment portfolio and potentially see a high return on your investment, investing in student property could be the way to go. With a growing demand for student accommodation and the potential for high rental yields, this type of property investment is becoming increasingly popular in the UK. And who knows, you may even find it to be a rewarding experience knowing that you're providing a safe and comfortable living space for students.
If student property does interest you, now is the time to discover our latest student development Optima, based in the heart of Bradford, the UK’s City of Culture for 2025. Located in the heart of the city, this development is the second phase to our completed and successful first student development Bijou.