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.

Is Student Property Investment a Risky Option?

Student property has thoroughly shed its former status as a niche investment. In the early stages of this year total investment value in the sector is expected to hit the £2 billion mark, according to a recent Aspen Woolf report. Investors are being drawn into student property largely by high returns. Last year, returns averaged 13.7%, well ahead of the average buy-to-let property, so it is not hard to see the allure.
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New report finds that students make the best tenants

As a landlord or letting agent, there are many factors to consider when renting a property, including finding your ideal tenants. On first glance students may not be your first choice, but new findings by utilities and service provider for students, Glide, and Accommodation for Students, found that students are in fact the most desirable tenants.
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Student landlords advised to take a broader view as tuition fees impact rental market

September 2012 marked the start of the first academic year where students could pay anything up to £9,000 per year on tuition fees. As we head towards the New Year, when students would typically start looking for their second year accommodation
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Report shows student accommodation is booming

Landlords looking to expand their portfolios may wish to invest in properties in popular student areas, as this segment of the market is performing particularly well.
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Why should I invest in student accommodation?

With more students going to university and college each year and an estimated 2.4 million students in the UK, and a huge shortage of accommodation, there is a huge opportunity to make large, passive income from investing in high quality student accommodation located in cities with prestigious universities.
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