Projected 9.8% geared income from new build apartments in London's Best Place to Live
Purpose Built Student Accommodation developments are designed and built specifically for the needs of students, while astute property investors are able to benefit from a high yielding and effortless income.
These privately-owned university apartments provide a safe and secure living environment, with space conducive to both study and socialising. This includes a range of appealing onsite facilities, such as gyms, games rooms, cinemas and study centres, as well as high speed Wi-Fi and Satellite TV.
Many benefit from onsite property management teams, while rents are almost always inclusive of all bills. Residents have a completely hassle free lifestyle, surrounded by a large community of like-minded students that allows them to get the most out of their time at university.
They are situated in prime close-to-campus locations, providing students with convenient access to lectures, seminars and social events.
All of this is music to property investors’ ears, with sustained demand creating an environment conducive to high occupancy, rental income growth and, as a consequence, attractive yields.
Universities have for a long time failed to provide enough halls of residence to accommodate all their students, and have consequently had to give priority to first year students.
Thus, despite 85% of second year students preferring Purpose Built Student Accommodation, the vast majority of students have to settle for less desirable residential housing – often located on the outskirts of the city.
Such accommodation is often sub-standard and located in run-down areas far from university campuses. There are also additional hassles, such as having to find housemates, pay bills, and furnish the property. Landlords are often difficult to contact should there be any issues, such as a leaking tap, lost key or broken boiler, and thus standards regularly drop rapidly.
On top of this, the shortage of accommodation in the UK as a whole – with a shortfall of a million homes expected by 2022 – has resulted in strict limitations on students living in such properties.
Though final figures after clearing are not yet in, the 3% increase in results day admissions, as well as the record number of clearing places available, clearly indicate record new student numbers for the fourth consecutive year in 2016.
This trend has been on a consistent upward trajectory for several decades, with new rules enabling universities to take in more students further boosting this growth since 2014.
Such demand for UK universities – from domestic, EU and overseas students – has also proven itself once again to be resilient to wider economic concerns. Indeed, economic uncertainty often results in an increased demand for university education in an increasingly competitive jobs market.
Property investors purchase individual apartment(s) within Purpose Built Student Accommodation developments. These are either fully operational properties or off-plan developments.
They typically receive full 250-year leasehold ownership, similar to the majority of new-build UK residential apartments, which is securely registered at Land Registry, as well as a fixed income period.
The fixed income period runs for between 2-10 years, with NET yields of 7-10%. This contract is usually tied directly to the property developer, ensuring buyer security, though in some instances third-party shell companies are used – you should check this prior to making a purchase.
The onsite management teams are then responsible for all operational aspects of the property investment. This includes marketing the property, ensuring occupancy, collecting rents, paying utility bills, and conducting repairs and maintenance etc.
Once the property is operational, the buyers simply receive the fixed NET income automatically into their accounts, usually each quarter.
We have already covered the high and sustained levels of demand, but what makes the yields in Purpose Built Student Accommodation so much more attractive that a traditional student buy-to-let?
We have an exclusive partnership with the only NHBC student developer, established in 2001. This ensures the highest standards of build quality, alongside a 10-year warranty on all new builds.
This relationship extends across 16 student developments, with many more in the pipeline. Each development is built and designed specifically with students in mind.
All of our property locations are handpicked based on their ability to deliver sustained high NET yields, with a critical undersupply of student accommodation and a thriving university(s). We also look into wider city investment trends and the popularity of the university among students.
In this way, we are often able to source regional UK university towns and cities, where prime close-to-campus development sites or properties can be purchased at below premium levels.
We provide our buyers with both fully operational and new-build student properties. Each of these delivers the same high NET yields – 8-10% – throughout 10-year fixed income periods.
These are the only UK student property investments to provide these high yields over such an extended fixed income period.
Legal fees are fixed and there are zero additional costs throughout the 10-year period.
Our industry-accredited onsite management teams are responsible for all operational aspects of our properties, with our buyers receiving automatic income each quarter.
For these increasingly popular short or long let properties, “apartments” refers to high quality individual units with 1, 2 or 3 self-contained bedrooms, fully-equipped kitchens and well-appointed lounge areas. They’re much more flexible than traditional hotel rooms and offer better value.
The “serviced” part refers to hotel-like benefits, which may include maid service, 24-hour reception/concierge facilities and unrestricted access to onsite amenities, such as swimming pools, spas, gyms, bars and restaurants.
Technology has led to radical change in the way we choose our travel and accommodation arrangements – for many travellers, a website like Airbnb is the first port of call.
The traditional tourist hotel sector is beginning to be perceived as expensive and restricting, and is in something of a decline; a whole generation of leisure and business travellers prefer the more ‘home from home’ experience offered by Serviced Apartments.
On top of this, for groups they are much more economical, with entire families able to occupy one apartment with self-catering facilities, reducing overall costs.
UK tourism is currently at record levels, both from overseas visitors and domestic tourists, who are increasingly holidaying at home.
A record 36 million visitors came to our shores in 2015 – an increase of 50% over the previous 12 years (VisitBritain). As of the end of May 2016, those numbers were already up by 3% even before the high season had started. What’s more, 7.3 million Brits have already taken a staycation this year – an increase of 10% on 2015 (VisitBritain).
Brexit will undoubtedly see these numbers multiply, with the greater spending power of many foreigners in the UK and the increased cost of holidaying abroad for UK residents.
You will be invited to purchase individual apartment(s). These are either fully operational properties or off-plan developments.
You’ll typically receive full leasehold ownership, similar to the majority of new-build UK residential apartments, which is securely registered at Land Registry, as well as a fixed income period.
The fixed income period runs for between 2-10 years, with NET yields of 7-12%. This contract is usually tied directly to the property developer, ensuring your security, though in some instances third-party shell companies are used – in which case you should exercise extreme caution.
Our Westbeach Luxury Serviced Apartments & Spa nestles on North Devon’s award winning Golden Coast in the UK’s most popular tourism region.
It boasts the area’s only Blue Flag beach, a two-mile stretch of coastline renowned as an international surfing and watersports hotspot.
The village backs on to the Northam Burrows Country Club and is home to a Global Top 100 golf course.
Crucially, Westward Ho! is one of the most accessible resorts in the ever-popular West Country, with the nearby M5 motorway and strong local rail infrastructure connecting it to the rest of the UK.
These beachside Serviced Apartments are luxuriously appointed, with a private kitchen, large open plan living space and hi-spec features – widescreen TVs, Wi-Fi and underfloor heating.
The operational phases have already won a TripAdvisor Centre for Excellence award and Westbeach holds a four-star accreditation from VisitEngland – the national tourism board.
Facilities include a luxury spa and Westward Ho!’s only indoor swimming pool. The property will soon also have a central complex with a rooftop swimming pool and sunken bar, alongside bars and restaurants.
Our highest yielding property to date, with proven income from the operational phases, buyers into Westbeach Luxury Serviced Apartments & Spa receive 10-12% NET fixed income for 10 years.
We’ve seen the demand is there, but what makes the yields in Serviced Apartments so much more attractive than a traditional holiday buy-to-let?
Emerging Property is a specialist property consultancy, providing high yielding and fully managed UK property investment opportunities. Each of our developments provides buyers with high yield NET income fixed for 10 years.
Our current focus is on two of the UK’s best performing property sectors – Purpose Built Student Accommodation and Serviced Apartments.
Purpose Built Student Accommodation has been the highest yielding UK property asset since 2011 (Knight Frank).
This is as a result of the ever-increasing number of students at UK universities and the critical undersupply of suitable housing to accommodate them.
Serviced Apartments have grown in popularity over the past few years and are the fastest growing UK hospitality sector.
This growth has largely been the result of record tourist numbers and the shift in accommodation preferences – from expensive hotels to better value Serviced Apartments.
Both of these sectors are also fundamentally Brexit-proof, with any economic insecurity actually leading to an increase in both student numbers and tourist inflows. This is due to the importance of a University education in an increasingly competitive jobs market and the depreciation in the pound – making the UK more affordable to foreign visitors and overseas trips more expensive for Brits.
All of our property investors receive 8-12% NET yields, fixed for 10 years.
With both new build developments and fully operational properties available, immediate income is provided on a number of our properties.
There are fixed legal fees during the purchase process, but zero additional costs thereafter. Our property investors receive a true NET income.
These are the highest yields available in UK property and they are proven across a large number of existing developments.
There are a few key aspects to the ability to provide such high yields:
All of our property locations are hand-picked based on their ability to provide sustained high NET yields.
In the case of student property, this includes towns and cities with thriving universities and a critical undersupply of student accommodation. This enables us to source properties with sustained high demand, while being able to secure prime close-to-campus locations at less than premium prices.
With Serviced Apartments, the focus is on the ability of the region to attract a sustained number of both international and domestic tourists.
We have an established and exclusive partnership with the only NHBC-certified developer in the student sector.
Not only does this ensure high standards, but it also provides buyers with the enhanced security of 10-year warranties on all new build properties – something unique in the sector.
On top of these elements of security, having been involved in the student sector since its infancy, the developer has extensive experience in building and refurbishing properties for the needs and demands of students.
Really, the key driver behind our high yields and long term fixed income periods is our property investment approach.
Whereby other developers sell individual units to buyers at inflated levels, thus reducing yields, our developer structures its property investment based on the confidence that they will achieve positive rental growth. They are, therefore, willing to sacrifice initial profits for long term gains.
In this model, the buyers’ and developer’s interests are aligned, with both benefitting from high occupancy rates, excellent property management and positive rental growth.
The buyers’ yields start high and then remain at that level for 10 years, as opposed to starting low and then relying on performance for staggered increases in their income.
Our focus is on informed investing. In this way, we always conduct extensive due diligence on all our property sectors and locations. This information is then passed on to our buyers in the form of Investor Reports, articles, infographics, videos and guides.
We have a zero hard sell policy, instead focusing on educating and informing our buyers. Our long term success as a company is reliant on the sustained success of our buyers’ property investments, which, in turn, is reliant on making informed decisions.
We have made our insights section easily navigable, with more specific details also available in our FAQs. Our property pages include key details of each of our developments, and is where you can request the comprehensive Investor Reports.
Please browse our website and, if you have any questions, don’t hesitate to contact one of our experienced property consultants.
Projected 9.8% geared income from new build apartments in London's Best Place to Live
These guest-ready holiday cottages provide a 12.17% NET comparable yield – fixed for 3 years