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Why location is key to student property investment success

Location central to property investment success
Nov 3, 2016

Clichés are only clichés because they’re true – and everything you’ve heard about the importance of location when investing in student property is just that.

You’d think that with 130 universities in Britain serving a student population of over two million, it would just be a matter of finding a reasonably-priced house in one of the university towns, doing a little conversion work and then putting the property on a student accommodation website.

But it’s not that straightforward

Because of a predicted housing shortfall of 1.8 million by 2025 (RICS), central government and local authorities alike are discouraging Buy-to-Let ownership by increasing rates of Stamp Duty and invoking the Article 4 legislation.

This requires landlords to seek and receive planning permission for conversion (by no means a foregone conclusion), and then to pay for a Homes in Multiple Occupancy (HMO) licence after inspection and approval.

What should you look for when choosing where to purchase?

Regional UK property investments

As always, you want to be sure there will be a significant demand for your property, so you need to find somewhere where there is a significant undersupply of what students are looking for – modern, comfortable, close-to-campus accommodation with first-class facilities.

So you can rule out the likes of Oxford, Cambridge, London and Birmingham which are prohibitively expensive.

Other cities, such as Liverpool, Manchester and Newcastle, have already been developed to the extent that the rate of undersupply no longer favours the property investor.

The locations you need to investigate further will be home to ambitious, expanding universities which attract students from all over the world.

See if any major city centre redevelopment is planned or has taken place recently; it’s a sign of a vigorous local economy, which is in turn an indicator of a quality investment location.

Also check out national and international transport links; overseas students can account for as much as 50% of long-term tenancies and are a good pointer to the town’s suitability and desirability.

Where next?

Of course, finding out all this information will involve a lot of research, a lot of blind alleys, perhaps a lot of mileage and more than its fair share of time and frustration.

Alternatively, you can browse our website.

Our handpicked student property investments

Uk property investment guide

We have a strong portfolio of close-to-campus student property, all equipped to the highest standards and managed 24/7 by professional onsite teams.

We and our partner developer have done all the legwork for you; all our research, data and due diligence is available to you in a couple of clicks.

Download our Investor Reports, look at our property photos and infographics to get a real feel, not only of the properties themselves, but also of the universities and the towns – their position, their prospects and their performance.

Any questions you have, don’t hesitate to ask – our consultants have a strict zero hard sell policy and know all the properties inside out.

View our student properties.

 

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