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Student Properties

学生财产 سكن الطلاب

Student Accommodation Properties

UK Student Population
1 m
International Students
490 K+
Average rent PCM
8- 0 %
Avg. Student Rent PCM
£ 540

Investing in purpose-built student accommodation offers several compelling advantages. It can be a rewarding investment if done properly, with constant demand providing a steady income stream. The demand for quality student accommodation is not only consistent but also on the rise. As student demand increases, so does urban development. Subsequently, improving the quality of these cities, and attracting more student renters to the area.

Over 600,000 international students arrive each year looking for a place to live, alongside the millions of domestic students that attend our universities across the country too. UK universities are actively seeking out more and more international students. This provides many financial benefits for them – such as higher tuition fees. But, it also boosts their diversity and reputation, which in turn can increase their overall rankings. Research shows that universities’ plans to increase international student applications are working, as the number of overseas students coming to study in the UK has risen by 70% since 2010 (source).

The purpose-built student accommodation market isn’t as susceptible to economic fluctuations either, as the Government places education high on its priority list. This makes it a great way to diversify your portfolio for increased income generation. Enrolled students require housing, creating a stable occupancy rate that also fuels back into our economy. Student property investments also often generate higher rental yields compared to other residential properties. This is because multiple students often share accommodation, increasing the potential rental income.

Student accommodation can often provide yields of more than 7% (source). It should be thought of as a long-term investment, as the demand is consistent and students usually require housing for the duration of their studies. This can lead to longer lease agreements and less time paying for an empty property. Not to mention, developers usually offer a net return of up to 10% for up to five years (source), so it’s important to view the investment strategically.

Cities that present strong student accommodation investment opportunities include Liverpool, Manchester, and Leeds. Both Liverpool and Manchester boast an average yield of over 5% and a student population of 70,000+ and 100,000+ respectively (source). Leeds is another major student city with two main universities – the University of Leeds and Leeds Beckett University – which host over 60,000 students (source).

Buying into purpose-built student accommodation is classed as a commercial investment, so they typically have a lower entry point price compared to residential buy-to-let properties. This could make them more accessible if you have a limited budget. Including purpose-built student accommodation within your investment portfolio also adds stability and diversification, as it often shows a low correlation with other assets like stocks and bonds. This means your student accommodation investment can act as a hedge against economic fluctuations and market volatility. This is an effective way of avoiding risk. 

For Lucrative Purpose-Built Student Accommodation Investment Opportunities, Turn To Opulent Invest.

Explore Student Investment Properties

What's Fuelling The Growth of PBSA

Changing demographic of students

 

The UK is host to some of the best universities in the world. For example, 4 out of 10 universities within the QS World University Rankings are located in the UK (source). With its prestigious reputation, more students than before are seeking out prestigious accommodation to match. A study from PBSA News found that 46% of students prioritise fitness and would like accommodation with relevant amenities.

Furthermore, 73% spend more time studying in their rooms than anywhere else (source). Such statistics suggest that students want to spend more time in their accommodation, where they can have all the facilities they need to feel comfortable. All of which explains why applicants for purpose-built accommodation have increased by 5% post-pandemic (source).

Increase of International Students

UK universities are attractive to international students looking to study outside of their home country, due to their academic excellence (source). Subsequently, it increases demand for rental properties within the country – as students seek a flexible and affordable living situation.

In fact, it has been reported UK universities are spending millions in fees to secure international students. For example, in the 2022/23 financial year, the University of Greenwich in London spent £28.7m on education agents and associated taxes (source).

Population Growth

The UK population is projected to hit 73.7 million by 2036 (source). By that time, there will be even more students than there are currently – as well as students from across the globe.

With this growth, comes a demand for student housing across all parts of the UK. In fact, The Times reports that there is a student beds’ shortage, and the UK needs 234,000 extra beds to match the demand (source).

Regeneration

There are several regeneration projects currently taking place in several cities across the UK, including Leeds, Manchester, Liverpool, and more. As improvements occur in these cities’ infrastructure, amenities, and transport – it increases the overall appeal of the area.


As a result, it attracts more students and therefore renters, which increases the demand. Landlords can take advantage of higher rents and ultimately, receive a better return on investment.

need more info?

If you are interested in this property or area, looking for more information or to learn how you could earn lucrative returns, get in touch with us today.

Investing in Purpose Built Student Accommodation

The demand for quality purpose-built student accommodation remains consistent, which can provide a stable income stream and a high yield compared to other residential properties. Prime locations and cheaper purchase prices also add to the appeal for savvy property investors.

FAQs

Yes, purpose-built student accommodation is a good investment for property investors in the UK. Whilst there are challenges, the demand for student housing is steady and increasing year on year – as the population grows, and the need for degree qualifications increases.

Yes, purpose-built student accommodations are profitable, as they offer higher rental yields in comparison to buy-to-let properties. Many developers even advise that investors can receive a 10% net return for up to five years (source). Not to mention, they have steady tenancy periods. As one set of students leaves – they are easily replaced by another group due to demand. This means there are fewer vacancy periods within the financial year.

Earn lucrative returns on student property investments today

Experience maximum returns, hassle-free investment, and award-winning expertise by working with Opulent Invest. From liaising with developers to managing your property and tenants, everything is covered when you choose us. 

Get in touch today for a free consultation. 

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