With demand exceeding supply in the home rental market, landlords have whole heartedly increased their prices – so much so that UK accommodation rents continued to rise month on month throughout last year.
However all is not lost for the savvy property investor as one niche area continues to outperform the wider market – student property rental accommodation.
With student properties let out on a per-room basis rather than per unit the area can give a low risk return of up to as much as 10% per annum.
That’s an attractive yield. And one that is buoyant; student housing hasn’t been hit by the UK’s recent double dip unlike the commercial property which it has persistently outstripped over the past five years.
Investors are now viewing student property as an asset class in its own right - due to both the aforementioned supply issues and the high demand for university places.
“We are seeing huge demand for student accommodation in the UK from investors not only from the UK but from Europe and from Asia – this is a ‘hot’ investment sector at the moment” mentions Conrad A. Bedford, CEO of Assets International, the student housing promoter.
SO THAT’S WHATS DRIVING THE TREND - WHAT ARE THE BENEFITS?
Higher Rents – Depending on the area rental yields are can be up TO 8-10% higher for student housing than for a standard buy-to-let.
Student Numbers Keep Rising - With an increase of 34% of all university applications over the previous five years the niche market is a proven long term investment opportunity.
Reduced Rental Voids – Student property can be rented months in advance and, in some cases, for a whole year thus reducing voids in more uncertain rental markets.
Hassle Free Investments – On site campus management teams handle maintenance and management issues therefore leaving investors handle only management charges and ground rent.
So the student accommodation sector is the faster growing asset class in the property market and continues to mature at lightning speed.
Gone are the days when pension funds and mortgage lenders spearheaded this rental market.
Conrad A. Bedford from Assets International continues, "This is a really popular area of the private-rented sector which will continue to thrive as demand for university places continues. UK and overseas students are now looking for something better than the "tired rooms" that clutter the market place."
And with students now demanding accommodation as established as their education they’re seen as bona fide rental customers, much in the same vein as commercial occupiers. With this in mind dedicated companies such Asset International are not only fulfilling their customers’ needs with bespoke housing options, they’re delivering an overall more sound commercial opportunity to investors.
For more information on this type of investment please visit the link below http://www.assetsinternational.co.uk/student-investment-property
To know more about the Assets International and their role in the market please visit their website at http://www.assetsinternational.co.uk