Student property is a former niche investment asset, but has become increasingly popular in recent years and has grown to become the highest-performing asset class in the UK. It blends together many of the advantages of both residential and commercial investments – particularly with the growth of purpose-built student accommodation serving to transform the landscape of student housing. Yields are also comparatively high, averaging 6.25%. Bear in mind that you have some seasonality to build into your figures, as students aren’t in your property all year round.
Another attraction of student property investment, or at least purpose-built student property, is that it is often sold on a fully-managed basis making it a popular hands-off investment. It is also generally considered a good hedge against recession, as it was the only type of property which saw growth in yields during the most recent financial crisis. There are underperforming developments, so assess any given investment opportunity individually, but for the most part student property offers a relatively positive investment avenue.