The Best Areas to Invest in Student Property
If you are considering investing in student property in the UK, you may be interested to know the prime locations for this type of investment. Luckily, we have compiled a list of the top 10 areas for student property investment in 2023, as student accommodation investment has become increasingly popular among investors. Read on to discover the best locations to invest in for student property.
Before we write about the top 10 best locations, lets talk about why student accommodation is the best investment in UK for local and International investors.
Why Invest in Student Accommodation?
Student property is a good investment in the UK due to several reasons.
Firstly, the demand for student accommodation is high, as there are more than 2.3 million students in the UK, many of whom require off-campus accommodation.
Secondly, the rental yields for student properties are typically higher than traditional buy-to-let properties due to the high demand and the fact that rental income is typically paid in advance.
Finally, there is potential for capital growth as the student property market has consistently outperformed the wider property market in recent years. Additionally, there are tax benefits to investing in student property, such as being able to claim back expenses related to the property.
What Are the Best Areas for UK Student Accommodation Investment 2023?
In order to determine the ideal locations for investing in student property, we have utilized various metrics to assess a city’s investment potential. Our evaluation criteria include factors such as the number of students, average property prices, rental yields, and potential for capital growth.
Additionally, we take into consideration the reasons why students prefer certain cities, such as availability of nightlife, lifestyle, affordability, employment prospects, and university standards.
Without delay, we present the top 10 areas for investing in student property in 2023, listed in no particular order.
1. Manchester
Manchester is a popular destination for students due to its many universities, including the University of Manchester and Manchester Metropolitan University. The city has a vibrant cultural scene and is home to many music and arts festivals. Manchester also has excellent transportation links, making it easy for students to get around the city and the surrounding area.
- Student Population: 105,000
- Universities: Four Major Universities
- Guaranteed Rental Yield: Up to 7% per annum
2. Liverpool
Liverpool is another popular destination for students, thanks to its many universities, including the University of Liverpool and Liverpool John Moores University. The city is known for its rich history, music scene, and waterfront. Liverpool has a large student population, which creates a strong demand for student housing.
- Student Population: 70,000
- Universities: Four Major Universities
- Guaranteed Rental Yield: Up to 10% per annum
3. Leeds
Leeds is home to several universities, including the University of Leeds and Leeds Beckett University. The city has a thriving arts and culture scene and is known for its shopping, nightlife, and restaurants. Leeds is a popular destination for students from all over the UK and around the world.
- Student Population: 65,000
- Universities: Three Major Universities
- Guaranteed Rental Yield: Up to 7% per annum
4. Newcastle
Newcastle is a vibrant city with a rich history and culture. The city is home to several universities, including Newcastle University and Northumbria University. Newcastle has a bustling nightlife and many cultural attractions, including the Theatre Royal and the BALTIC Centre for Contemporary Art.
- Student Population: 50,000
- Universities: Two Major Universities
- Guaranteed Rental Yield: Up to 6% per annum
5. Birmingham
Birmingham city has a rich history and culture. The city is home to several universities, including the University of Birmingham and Birmingham City University. Birmingham is known for its shopping, nightlife, and cultural attractions, including the Birmingham Museum and Art Gallery.
- Student Population: 75,000
- Universities: Four Major Universities
- Guaranteed Rental Yield: Up to 6% per annum
6. Sheffield
The city is home to several universities, including the University of Sheffield and Sheffield Hallam University. Sheffield is known for its music and arts scene, as well as its history and culture. The city has excellent transportation links, making it easy for students to get around.
- Student Population: 60,000
- Universities: Two Major Universities
- Guaranteed Rental Yield: Up to 7% per annum
7. Nottingham
Nottingham is a popular destination for students due to its many universities, including the University of Nottingham and Nottingham Trent University. The city has rich history, culture, and nightlife. Nottingham is also home to several large shopping centers, making it an attractive destination for students.
- Student Population: 60,000
- Universities: Two Major Universities
- Guaranteed Rental Yield: Up to 6% per annum
8. Edinburgh
Edinburgh is the capital city of Scotland and is home to several universities, including the University of Edinburgh and Heriot-Watt University. The city has a rich history and culture, and is known for its festivals, including the Edinburgh Fringe Festival. Edinburgh is also a popular destination for tourists, which creates a strong demand for student housing.
- Student Population: 70,000
- Universities: Four Major Universities
- Guaranteed Rental Yield: Up to 7% per annum
9. Cardiff
Investing in student property in Cardiff can be a lucrative opportunity for several reasons. Cardiff has a large student population of over 70,000, with major universities, including Cardiff University and The Cardiff Metropolitan University and several other higher education institutions. This creates a high demand for student accommodation, which can result in consistent rental income for landlords.
- Student Population: 70,000
- Universities: Three Major Universities
- Guaranteed Rental Yield: Up to 8% per annum
10. Bristol
Bristol is a vibrant city with a rich cultural scene. The city is home to several universities, including the University of Bristol and the University of the West of England. Bristol is known for its music and arts scene, as well as its historic architecture. The city has excellent transportation links, making it easy for students to get around.
- Student Population: 50,000
- Universities: Two Major Universities
- Guaranteed Rental Yield: Up to 6% per annum
In conclusion, these are some of the top areas to invest in student property in the UK, based on factors such as proximity to universities, local amenities, safety, affordability, and employment opportunities.