Is now a good time to invest in student buy to let?

[Debbie Williamson]

With the cap now lifted on the number of students universities can recruit, do you think now is a good time to invest in student buy to lets?

 

[totallyproperty]

An excellent question. Demand from overseas students is also still very high which adds to this demand.

With London becoming increasingly difficult to invest in, it's great that we have so many cities across the country with leading Universities. This gives both a high demand from tenants as well as affordable purchase prices. Leeds, Manchester and Sheffield are all great examples of these.

 

[Nicholas Wallwork]

I think having an element of student property in your portfolio is an excellent idea. Universities aren't going anywhere, demand is growing (as is the student population) and good quality student accommodation will always needed. If you do invest in student accommodation make sure the agent your buy from is reputable and the city has strong and increasing demand. Also ensure it's managed correctly if management is "included" in the deal package you're buying into...

 

[Debbie Williamson]

I totally agree. Management is so important.. And there's no way universities can keep up with demand right now..
Maybe something to consider is if the student buy to let has full residential planning for future safe guard if the student situation changes?

 

[Michelle Barringer]

Investing in student property still seems like a good option - provided it has resi planning so can be used for non student if required in the future

 

[KGeeson]

Are there any other markets that you think are 'on par' with student investments (in terms of being able to compete with the returns and demand student investments give)?

 

[Jane Britan]

Yea,it's a good idea.

 

[Luke Masters]

Based on market movement it suggests people think it is a good time to invest in the student property market, see below an extract from an article from Property Investor Today:

In the first half of 2015, £3.8 billion was invested in student property in the UK, and it’s predicted that this will rise to £5.7 billion by the end of the year. This amount is equal to the last three years combined.

The figures should come as no surprise as the demand for student accommodation continues to increase. In the last 10 years there has been a 50% increase in the number of international students, with 18% of the growing student population being international, according to the investment firm's findings.

Source: Property Investor Today

 

[Luke Masters]

Something I just received which people may find interesting... It would also tend to suggest further the student sector is growing rapidly.

Again from Property Investor Today - Well worth signing up to the daily news updates if you haven't already

The UK's first ever student property investment comparison portal has been launched by digital advertising company Lead Galaxy.

The portal, studentproperty.investments/ is looking to take advantage of the booming, ever-growing student accommodation sector. The website allows investors to search and compare investment opportunities in this thriving market.

It also allows investors to search and compare by yield, terms, buyback or starting prices.

 

[Cowell]

To add another layer here, is there speculation that property investment groups might buy land for the sole purpose of building PBSA? (Purpose Built Student Accommodation). I understand that councils are actually encouraging this move, and it seems to be a growing trend elsewhere.

 

[Nicholas Wallwork]

Very interesting well found Luke...

Cowell - it makes sense councils want dedicated student property in defined areas rather than private rented student houses scattered around the university towns often causing councils to take action to stop the prolification of student HMOs using an article 4 direction...

 

[sergerybrin]

Its such a great idea!! This is the best time for buying the to-let for students it will definitely help in future.On student investing there must be discount on buying apartment or to-let.Students who will interested to buy should make sure the agent you buy from is having good reputation on his business.

 

[Luke Masters]

@sergerybrin do you have any experience in this you would be happy to share? Or areas you have found to be good for this kind of investment, potentially in the North?

 

[Ed_P]

It's a very good idea, as student numbers are surprisingly rising which means more students lets are needed. There's also plenty of opportunity outside of London, such as just down the road in Brighton. If I'm not mistaken, Brighton is the biggest student population outside of London?

As many others have said, there's also plenty of opportunities in the midlands (Birmingham) and up north too!