Renting to Students Provides a First-Class Investment

If you think of student property and your mind goes to dirty, cramped terraced houses the student accommodation of 2018 will be a shock to the system. Chic studio apartments, cinema rooms and free coffee from independent cafes are all features of new purpose-built student accommodation.

Affordable Investment

Student Properties have a few key benefits over traditional buy to let properties. The lower house prices available for studios and apartments allow new people to start investing in property. With prices from under £60,000, the range of properties available at https:/ are surprisingly affordable. For people joining the property investment market, student accommodation provides both rental yields of 6-8% and valuable city centre property. For investors looking to diversify their property portfolio, a few student studios in growing cities across the UK can be a great way to generate income and discover new profitable areas.

A Growing Sector

Investment in student accommodation has been reaching record highs. The higher education sector is staying strong and universities are investing heavily in state of the art facilities. This competitive market means that universities are constantly improving and investing to stand above their rival institutions. The long term return of student buy to let properties is also something that is attracting investors to this sector. Over the last five years return on investment in student property has been averaging at a massive 11.8% compared to the 7.8% and 7.4% returns from residential and commercial property. The convenient city centre locations chosen by many student property developers allows investors to acquire property in prime locations.

More Diverse Students

The UK has some of the finest universities in the world and continues to attract some of the finest students too.  There were 450,660 non-UK students in 2016/17, with many staying on to study postgraduate degrees too. These international students who can afford to travel and study abroad aren’t looking for cheap, low quality accommodation. Often staying throughout the summer months, international students are looking for high end accommodation with modern design and great city centre locations. Studio living is also popular with international students who are looking for a place to live. UK students are also looking for more out of their private accommodation. Huge investment by universities into first year accommodation, with brand new halls, has raised their expectations. New purpose build student accommodation offers stylish city living that they have gotten used to and is proving popular.

Regular Tenants

Many buy to let student properties have tenants organised by the developer and local universities and agents. This means that owners no longer have to worry about the specifics of being a landlord, they can let someone else do that for them. In the past, investors may have worried that student property would be left in a state, damaged by unruly teenagers. However because of the new kind of luxury student accommodation and the type of students it attracts, this is no longer an issue.

A Great Investment

Purpose built student accommodation can be a smart investment. With high returns, consistent tenants and low entry prices, this sector is continuing to outperform traditional buy to let property. Many off plan developments are already sold out, with savvy investors looking at student accommodation as a great addition to their property portfolio.


Arnel Ariate is the webmaster of Money Soldiers.

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