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Why should property investors seriously consider student rentals in 2023? Rising university applications are putting pressure on rental markets in student cities across the UK. With rising student numbers, and fewer landlords entering the market, it seems that this trend will continue to grow over the coming years.
Student landlords may benefit from rapidly increasing yields on their student lets.
Student properties are known to have one of the greatest yields out of any housing lets. Charging students per room, rather than the rental for the entire property, means that rental income is naturally high without having too many negative repercussions for the tenants (students). Larger student houses (with four or more rooms) have highly compelling yields against the value of the property.
The trend isn’t location-specific
Property investors seeking to enter the student market have a lot of options in terms of location. The demand for student accommodation is rising rapidly across the country, particularly in Northern university cities such as Manchester, Bradford and Nottingham. There has also been a significant rise in demand across smaller coastal towns which could present interesting new cost-effective opportunities.
Constant influx of new tenants
Whilst student lets are short-term in nature, each year landlords can guarantee a fresh set of students seeking accommodation in the area. A well-located student house should have no problem securing new tenants year-on-year, whilst having the freedom to evaluate rental prices annually before welcoming new tenants to the property. Whilst there’s presently a lack of new investors in student housing, it wouldn’t be a surprise if this trend changed over the next year in response to the competitive demand.
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