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.

Student Investment Property - Assetz

[caption id="" align="alignright" width="148" caption="Stuart Law - Student Accomodation has in all!"][/caption] High yields. Totally hands-off investment. Strong nationwide rental demand. Cash-generative. Student accommodation has it all. Student accommodation has always been one of Assetz’ primary recommendations to any investor, whether you’re looking to add to your existing property portfolio, or if this is your first ever property investment. Our reasoning for this is quite simple; it’s a low risk, high yielding and totally hands-off investment and our clients have profited hugely over the last five years from following our recommendations in this sector. It is also a sector where Stuart Law, the founder of Assetz, has made significant investments in his own portfolio. With UCAS reporting that student applications for 2009-2010 are approaching 2.4 million (up 34% from 1996-1997)* and a huge national shortage of student accommodation, this is still a perfect time to take advantage of current investment conditions....
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Student Sector - An Introduction

Assetz is a long-term supporter of the student sector having been active in it since the early 2000s. I have invested in it personally and this year saw 10% gross rental growth across the board in all my properties - I focus on new build private halls of residence. There are many reasons for this strength but the primary one is yet again our old favourite of supply and demand. UCAS confirmed there had been a 10.2% rise in applicants for all UK courses from UK students and an even greater growth of 12.4% in applications from non-EU students. The Eurozone provided a whopping 22.8% increase in applications. There just isnt the student accommodation available for these numbers, which is what is driving the new build student sector to grow so strongly and provide such excellent investment returns in both income and capital growth. Capital growth in student accommodation is materially...
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