Purpose-built student accommodation is all about the location. If you invest in a student property with a prime location you can see a high annual net return of up to 9%. A prime location involves being close to the cities universities, shopping centres, restaurants and nightlife.
This article will outline the UK’s student accommodation investment hotspots. You can use this information to see where the current prime locations for the highest returns are and decide which location will best suit you.
What Is The Best Place To Invest In Student Accommodation?
Carla Passino, Country Life journalist discovered some of the best place to invest in a student property. With Britain’s top universities performing better than before, Passino decided to record her experience for a news post on the Country Life website. Here are her findings.
- University of Manchester
This university is 8th in Britain and 55th in the world. Manchester also has the biggest student community in the UK with 40,000 students. The demand is definitely there for purpose-built student accommodation. Manchester has the average rental yield of 6.6%, some of the highest in the UK.
- University of Edinburgh
This is Scotland’s top university, ranking at 27th in the THE chart and 6th in the UK. The location features reasonable prices and high yields. The average rental yield is 5.6% with the average rent of £800.
- University of Warwick
Warwick (82nd overall and 10th in th UK) is a popular place for parents to buy a student accommodation with low rents of £598. One and two bedroom houses 2 miles from the Coventry campus is one of the most affordable amongst the UK’s top universities. The average return on investment is 5%, making it a great place for student accommodation investments.
- University of Bristol
Bristol as ranked 71st overall in THE’s rankings report and it is also a holder of a UNESCO award for the Green Impact programme, encouraging UK universities to be more eco-friendly. The 23,000 student body makes it a demanding location with an average of 4.4% and capital growth remaining solid.
- Oxford University
Oxford University was ranked 1st in the 2016 Times Higher Education (THE) rankings over America’s Caltech (the five year running champion). This is the first time in 12 years a UK university has taken the number one spot. In terms of investment returns it can vary. With average rental yields of 4.2% it is a promising location.
- Cambridge University
This is ranked the 2nd in the UK and 4th on the overall THE list. The city is flourishing with tech and medical research advancements and is a bit more expensive than other university towns. The average yield is 3.9% with an average rent of £1,000.
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