Investing in student property can be financially rewarding
Property investment in the UK is huge, but the large majority of property investments are for student property.
In 2013 student property investments saw £2 billion in funding and averages around 5-6% higher yields than the buy-to-let market. These are some pretty staggering statistics, but they're also extremely attractive to those looking into investment. As you may know, we have one of the very best education systems in the world, which means we see a huge influx of foreign students, all of which need somewhere to live when they study.
And it's not just foreign students that have contributed to higher demand for student properties, there is also a surprising amount of mature students who contribute to this demand. In 2014 the rental growth for student properties was 2.75% for regional properties and 3.00% for London properties, showing an increasing need for student property all over the UK.
House shares are extremely common for university students, but these kind of property aren't always suitable and can create a number of risks. These risks can include the theft or damage of property by other housemates or having to increase your rent should housemates leave or be evicted from the home. To avoid this students should invest in university approved properties, such as those bought by property investors.
The infographic below "Student Property Investment" from Aspen Woolf looks at students in the UK and their overall contribution to student property investments, looking mostly into demand and growth. Did you know that international students contribute £10 billion to the UK economy each year? Please read on to find out more…