Why is the student property market such an attractive investment?

6 months ago written by


Where you find a thriving city, great universities, and a place where people want to live and study in, you’ll find students. Whether people come to Liverpool to study from another part of the UK or if they are from overseas, the city isn’t short of attracting talented students or property investors.

Usually, students will live in either university halls of residence, lodge, live in residential properties (traditionally known as a shared house), or will set up home in what is becoming a popular choice – particularly for overseas students – quality purpose-built student accommodation (PBSA).

There’s an array of choice. And with a student population of 70,000, Liverpool can clearly demonstrate its credentials as an excellent city for property investment.

Changing market

Where people choose to live while studying has changed, which is why the student property market is more attractive than ever offering a more diverse portfolio. Re-purposing old building is another way investors can make their mark in this lucrative market. A recent example of this is Granite House, a Grade II listed building in central Liverpool. It will be re-purposed into a boutique student accommodation. Located close to bars museums restaurants and near to Liverpool Central library, the L1 postcode is also close to Liverpool Lime Street railway station: convenient for students who are not from the city and occasionally need to travel home.

In recent years the city has seen a surge in student accommodation investment. Some at the high-end luxury part of the market, although residential buy-to-let properties in traditional student areas still continue to do well.

The Cushman & Wakefield UK Student Accommodation Report 2017/18 shows that Liverpool’s 2017-2018 academic year has seen the supply of purpose-built student accommodation bed spaces total17,080, of which, 1,844 beds were new for the current academic year. And in the past three years, more than 5,800 bed spaces have been brought to the market in Liverpool – increasing the total supply by 50%. Numbers like this, along with the city’s charm, cultural mix, its leading universities, and of course the local people, puts the student accommodation scene in a very attractive light. And with a combination of high rental yield with low vacancy rate, because of the demand of the city’s 70,000 plus students, student property is demonstrating that its appealing prospect for investors. You can find out more information and view properties in Liverpool here at RWinvest.

Attraction beyond property

But no city in any part of the country can rely on property alone to attract investors. Liverpool has a much wider appeal for those who choose to study there, and for property investors looking to invest in the city. A big attraction is the friendly attitude, and warmth of the city’s people. This coupled with its diverse cultural mix, makes Liverpool an attractive place for students from the UK and overseas.

Liverpool’s culture is a great mix. It’s one of the most important cites in the history of multiculturalism and home to a blend of communities from different backgrounds, race and culture. This gives the city a vibrancy that cannot be matched. It’s the unique mix of its people that helps to attracts students in their droves. And since its tenure as European Capital of Culture, the city has truly catapulted itself onto the world stage – making it more visible, exciting and enticing to property investors.

Decisions Decisions

Investors from overseas or those in the UK who are keen to get involved in the student property market have some choices to make. Do they decide on city centre investment? Or do they opt for property hotspots in traditionally popular student postcodes such as L15, L17, or L18 (in areas including Smithdown, Aigburth and Allerton.)

Regardless of the area, one fundamental reason the student property market is an alluring investment is that for many it’s seen as less risky. Its yearly income pattern means financial forecasting is easier, and predictions have the basis of consistency from the annual arrival of multiple tenants each autumn term. This, along with guaranteed rents, shows how the student buy-to-let market forms its offer of high capital appreciation.

For information on property investment opportunities contact RWinvest on +44 (0)151 808 1250 Email: [email protected] or visit our website.

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