17 May 2017
17 May 2017,

The latest figures show that student buy-to-let investment has soared in the last year. According to a recent report, purchases of student buy-to-let property for sale have risen by 17%, despite the fact that applications for further education have dropped slightly.

Here’s more information about student buy-to-lets in the UK, and advice on how to invest in the student market.

What’s Causing the Rise?

Despite the results of the EU referendum, which many predicted would cause a slump in the housing market, buyer interest has remained high. This is particularly the case with international investors, whose share of the student buy-to-let market has increased from 35% in 2015 to 64%.

The continued interest demonstrates clear confidence in the UK property market, which isn’t surprising, given the higher than average rental yields associated with student accommodation. Average student rent has risen by 2.7% on average in the last year – and this growth shows no sign of abating.

Is Now the Time to Seek Property Investment Opportunities?

Current trends suggest that investment in student buy-to-lets is likely to continue to grow – which means that it’s advisable to buy sooner rather than later. When searching the market for buy-to-let property for sale, consider the following:

  • What is the average rental yield? What are students willing to pay in the area? Are other landlords enjoying good success? What will your average monthly income be?
  • Is there opportunity for capital growth? How are house prices performing in the region? Do property investment agents believe they’re likely to rise higher, and if so, what are the predicted figures? Make sure you get a firm idea about figures before committing.
  • Where are the student hotspots? Some areas are likely to be more sought-after by students than others. Which locations are most popular with students? Is it worthwhile exploring slightly further afield, where house prices might be cheaper? Research the local area as much as possible, as this will help fine-tune your search.
  • Are there good local amenities / transport links? Generally speaking, students like to be near local amenities, such as shops, bars and pubs. Close proximity to bus stops and train stations are also highly desirable.
  • Is there potential for HMO conversion? Can the buy-to-let property for sale be converted easily into an HMO? If do, how will this affect the potential rental yield? Do you have the available funds to complete the conversion to a reasonable standard? If you’re not sure how much it’ll cost, ask a builder to provide you with a quote.

The Buy2Let Shop Limited

Student buy-to-let property for sale offers one of the highest rental yields, which is why it’s rapidly growing in popularity. If you’re looking to invest in property in the UK, but you’re not sure where to start, talk to The Buy2Let Shop team. We’re professional property investment agents, and we’re here to support your property investments – from sourcing a great buy-to-let, to sealing the deal at a great price.

For more information about our services, simply visit The Buy2Let Shop website today.

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