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Student Accommodation Investment – Is it really worth it?

Student Accommodation Investment – Is it really worth it?  

Property is still the best investment you can make today. Of course, like with any venture, strategy and planning play a crucial part in success. But with so much uncertainty following the Covid-a19 pandemic, choosing the right strategy can be daunting. One strategy that has always been a topic of discussion is student accommodation investment.  Does it live up to the hype? What does it look like in a post-pandemic world? Is it really worth it? 

The thing is, with more students applying for further education and the surge in international students coming to study in the UK, the market continues to grow. In fact, Savills cited that as of 2021, there is a 8.5% year-on-year increase in applications to universities for this coming year.On the other hand, at £5.77 billion, 2020 was a record-breaking year for investment in UK Purpose-Built Student Accommodation (PBSA). So not only is demand growing but so is supply, even in a post-pandemic world. A great sign for anyone looking into student accommodation investment! 

Student accommodation investment – what to consider before getting started  

So, we’ve established that student accommodation investment is indeed lucrative, even in a post-pandemic world. Here are some top tips and key areas to consider before jumping in.  

  • Location is everything 

It’s important that you know the area you will be investing in student accommodation in. Is it near a college or university campus? Does it have good transport links? Is it a popular area with students?  

  • Student property management can be demanding  

Managing a student property can be quite demanding. There are many areas to cover that you may not need to consider for another type of lettings such as guarantor processes.  

  • Research, research and more research  

Student accommodation can be very competitive. You’ll need to study competition in the local area before deciding on the type and size of property you would like to invest in. Although HMOs are popular, there are also other options.  

  • Demand is not all year round  

Students typically rent out the property during the academic year. This means that you’re likely to have an empty property during the rest of the year. It’s important that you factor this into your financial planning.

No doubt, student accommodation investment can be incredibly lucrative. The idea is to do thorough research and planning before committing in order to minimize risk and maximise profits.