Student Accommodation: A Good Investment?

As we start to approach this time of year, parents and fresh-faced new students start to arrive at universities across the UK. Setting up dorms, paying the student fees and tackling IKEA for the all-important supplies needed to send them on their way into the student world…

For parents, it is often the cost of student life such as student loans, accommodation costs and how long their son or daughter can make a loaf of bread and pint of milk last that keep them awake at night.

What makes student accommodation a good property investment?

For investors and landlords, September is one of their busiest times of the year especially with those who predominately let to students via houses of multiple occupancies (HMOs) and student let properties. With investment-focused properties that are specifically geared up with en-suite rooms and communal spaces, student accommodations can easily occupy several tenants – thus returning the landlord’s return on investment far quicker than traditional rental properties.

On a student property, the rents can be considerably higher compared to traditional buy to let properties. In turn, that can give better yields – especially if you find a property in the right area. The voids during the summer months when universities close can be easily covered by the higher rental received during the occupied periods.

What are the drawbacks of student accommodation?

There are some drawbacks to student accommodation that need to be taken into consideration. When dealing with students, there is going to be a greater need for more frequent refurbishments, allowances for wear and tear and the potential licences needed depending on your area – but given the income received, this still can be a profitable way to invest in the property market.

Another consideration is the need for a specialist mortgage provider as not all lenders will mortgage student properties.

Paragon is one of the front runners in the buy to let mortgage market who understand that landlords need a lender who can offer mortgages on a variety of property types including the student let properties.

They recently published a helpful report about the Student Accommodation industry that can be found here.

Ready to invest?

If you feel that exploring this industry is the next step for you to expand your buy to let portfolio, RH Financial Consultants can provide full advice and make the necessary applications on your behalf making the process simple and easy.

Contact us now on 01142 353332 or complete the form below and one of our Buy to Let experts will call you back.