Trends in investment change from several to several years, but in the past ten years, those in student accommodation have boomed. This sector has been one of the fastest-growing, as students are increasingly open to boosting their education internationally. The United Kingdom is one of Europe’s most promising and sought-after nations, thanks to its extensive portfolio of renowned universities that give students an extraordinary competitive advantage when entering the workforce.
Given the UK’s high appeal for international students both inside and outside the European continent, it remains a rewarding place for student accommodation investments. But what are the best areas to consider investing money in these properties? And what do they bring to the table besides an extensive student population?
London
London is unquestionably the location with the most hunted student properties across the UK. It is a highly urbanised and crowded city, with more than 400,000 students taking courses here and coming from 200 foreign countries. For a quick recap, the capital was awarded the title of the best city globally to meet students’ needs two years ago. Seventeen universities offer fields and profiles that cover pretty much any domain a student could take interest in, being well dispersed over the area and creating enormous opportunities for those seeking to invest in student property that will generate profits.
Over 120 different libraries and 1,000 museums reside in “the city of dreams”, so it will continue to serve as the spot with the highest appeal for all sorts and ages of students across the world, but not only. Out of all the students learning here, a considerable number decide to gain citizenship and establish themselves in or around the city, which is why having a property in the vicinity of London, in areas like Hertfordshire, is just as lucrative as offering rent near the universities. If you own property close to the capital and intend to house more families or groups of students, consider investments with long-term benefits, such as upgrading the property with amenities, elevating its aesthetic appeal, and incorporating secure elements like interior staircases from Rickman Stairs.
At the moment, London encompasses the most extensive student population in Europe, estimated at more than 400,000 students. Justifiably, this is also the costliest location to rent, with prices having exceeded £4,548 pcm. House prices revolve around £1,1BN, and it’s important to emphasize that putting your hands on a property here is not all about making the down payment but also about making the necessary investments in reparation or home improvements. However, the upfront costs will be offset by the potential earnings, especially if you plan to rent the property for years to come.
Liverpool
Liverpool has long secured its reputation as one of the best and most sought-after cities where most students decide to continue their upper studies. It’s not just that it’s home to five of the most respected and prestigious universities in the United Kingdom, such as Edge Hill University and the University of Liverpool, which deliver courses to both national and international students. One reason that often escapes real estate investors’ sights is that the city’s rapidly growing economy, prosperous career opportunities, and diverse cultural scene are elements that most students nowadays seek when getting out of their comfort zone to pursue a better education.
As if the student population in the area, numbering more than 70,000 students, is not enough reason to consider Liverpool for a student investment, recently, it has been disclosed that more are expected to come to the area. Liverpool will offer students of Manchester housing starting in 2023 because of the current shortage of properties the UK is dealing with.
The city is often eyed by investors in student properties because house prices usually fall below the national average. Still, the pricing strategies depend on the exact location you’re after, so conduct a thorough market analysis before pouring your money into a property.
Manchester
With a student population exceeding 105,000 and insufficient properties for rental as well as high demand, Manchester stands as one of the most outstanding areas to make such an investment (should you have this possibility). With four major universities offered in the area, such as Manchester Metropolitan University and the University of Manchester, the city attracts plenty of students.
However, it’s not only the educational opportunities that entice students. The city welcomes graduates aged 22 to 25 thanks to the many cultural, social, and entertainment attractions created, with all this appeal existing despite salaries being lower compared to other UK areas. The city boasts a lively cultural scene and organizes numerous arts and music festivals. Plus, countless impressive sights with exciting and enriching activities gather plenty of students looking to live the student life at maximum. Similar examples are the Manchester Art Gallery, the Science and Industry Museum, the AO Arena, the National Football Museum, and so on.
Sheffield
Sheffield only houses the University of Sheffield and Sheffield Hallam University. However, the diversity of courses and professors’ impressive reputations are not minor feats to neglect. More than 30,000 students from 140 nations gather to learn at the former university, which teaches attendants about communications, media, architecture, and more. This is also a public research university that ranks among the best-funded ones in the UK, meaning that students looking to establish themselves in London will likely spend more than a university semester in this city. Investments that will ensure your property’s longevity, comfort, and functionality in the long term are more likely to pay off since students may seek longer rental contracts than other cities.
As you can tell, Sheffield is not among the first cities to hear about in discussions concerning students’ favourite cities to live in for academic purposes. Still, it hides impressive potential that waits to be explored by the clever mind with entrepreneurial spirit.
Closing thoughts
The regions illustrated above represent some of the most financially promising locales to consider for investments in the autumn of 2023. Yet cities like Birmingham, Leeds, Newcastle, Edinburgh, and Cardiff also promise lucrative possibilities.
Ensure you conduct comprehensive research and maintain a steadfast long-term perspective when arriving at your decision.
