In the academic year of 2019/2020, there were 2.46 million students studying at UK higher education institutions, according to the House of Commons Library.

There is a huge demand for student accommodation across the whole of the UK.  Because of this, towns and cities outside of traditionally high capital growth areas such as London and the South East are a great option for investment, and the properties are far less expensive.

However, with so many options available, it can be hard to know where to start looking in order to take advantage of the returns to be had from student accommodation.

Get To Know The Area

As with any property investment, it’s vital that you understand your market. It’s especially important to get to know the area you want to invest in.

Increasingly, many universities are working with local authorities and developers to build brand new purpose-built student accommodation.

The preferences of tenants can change frequently, as newer and more convenient accommodation becomes available.  It’s therefore important to keep tabs on student preferences in the area, and any new accommodation that’s coming to market in the future.

Take A Look At Our Student Accommodation

Many university students prefer to live in areas that are dominated by student housing, so they can be within easy walking distance of their friends.

It’s more important to be close to campus in some towns and cities than others, so take public transport into account.

Lujo Investments have many purpose-built student properties available for investment.  Take a look at just some of our current offerings.

Derby Court, Liverpool City Centre

Located within minutes of Liverpool’s popular Student Quarter, this residential development consists of 27 apartments, with a mix of studios and one beds.

The Printworks Block B, Preston

Located on the University of Central Lancashire’s campus in the centre of Preston, the Printworks is the perfect solution for those looking for independent living in a student environment.

The four-storey development comprises 218 self-contained studios across two separate buildings.

Nebula, Sheffield

Nebula is a stunning, purpose-built student accommodation located in Sheffield city centre.  It comprises 152 en-suite and studio apartments and is just a short walk from both of Sheffield’s universities.

The Met, Newcastle-Under-Lyme

The Met is located in the heart of the student town.  There are many cafes, pubs, nightclubs, shops and leisure activities right on the doorstep.

It comprises 211 fully managed and furnished premium student apartments.  The communal and social spaces create a unique sense of community.

Find Student Accommodation For Investment

These are just a handful of the many student properties that we have available to buy at the moment.  Use our investment search tool to find student accommodation in Manchester, Leeds, Liverpool, Birmingham, Cardiff, and many other student towns and cities in the UK.

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With the stark differences between the regions of the UK, choosing the best investment has become even more challenging than ever before.

For the longest time, higher overall returns were seen in investments in the South-East and London areas.

However, prices have become stagnant recently as more and more  buyers are being priced out of the market, while investors are struggling to find good yields.

Today, more and more investors look for fantastic property opportunities in the north of England that now enjoys the highest yields in the UK,

with house prices expected to grow even bigger in the near future.

However, where exactly can you find such exciting investment opportunities in the North?

Birmingham

With a regional economy worth £90 billion and a metropolitan population of 4.5 million,

Birmingham has enjoyed significant benefits from the latest infrastructural investments.

HS2’s latest development will cut down travel times from London to only 50 minutes, signalling a higher demand for Birmingham properties.

The chronic limitation of rental accommodation is further increasing property prices.

Birmingham Archives – Lujo Investments Worldwide

Liverpool

Liverpool is changing from a port city into a fantastic cosmopolitan city.

The city is currently enjoying significant benefits thanks to the public investment and large-scale job creation that make it the fastest growing economy in the UK.

The £5 billion-worth scheme of Liverpool Waters is one of these regeneration projects.

It is a brownfield site of 60-hectares to be developed into five brand new neighbourhoods.

There are some great opportunities to invest here and earn a net yield of up to 8%.

Liverpool Archives – Lujo Investments Worldwide

Manchester

Dubbed as the North’s unofficial capital, Manchester is now the fastest growing city in the United Kingdom outside of London.

The city currently has the highest yields in terms of rent per square foot –  almost double that being offered in London.

Manchester homes have an average price of £152,000, making it relatively cheaper to purchase here than the average price of a home in London and the south east

which currently costs around £500,000.

In addition, Manchester also boasts a sizable rental market.

The latest regeneration projects in this city have also led to a significant increase in property demand and these include the digital Northern Quarter and the Salford Quays complex.

Manchester Archives – Lujo Investments Worldwide

Sheffield

As one of the UK’s greenest cities, Sheffield is home to over 2 million trees and has more than 80 parks.

This makes it one of the most interesting places for investment in the North.

This is also where you can find two of the biggest universities in the UK.

However, most of these students don’t have access to the accommodation provided by these universities.

The current numbers are expected to increase further as the population of international students are expected to grow up to 15% to 20% in the coming five years or so.

It is easy to see that the North is poised for some significant growth in the near future, so don’t miss out on these exciting opportunities!

Sheffield Archives – Lujo Investments Worldwide

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It doesn’t matter what type of property you choose, you want to know exactly what you are getting into.

Doing your own due diligence is the first and most critical step you need to take before you start putting your money into any property.

Due Diligence Defined

Due diligence refers to the investigation of a specific matter, typically undertaken prior to contract signing. In this case, it is investigating a property before you buy.

There are several formal reports you could get, together with informal enquiries that you can make as part of your own diligence.

It is your personal responsibility to carry out this due diligence. You should seek assistance from your legal team.

Why Should You Conduct Research Before You Make Property Investment Decisions?

It is critical to do your research  before making any decisions as far as property investing is concerned. This plays a big role in the overall success of your investment.

Here are some of the reasons why you should make it your priority to conduct research before you make any property investment decision:

• Research enables you to consider all your options.

Lack of adequate research will likely make you settle for the easiest or most appealing option from the get-go.

It is a big no-no since you might end up missing out on a better deal that can offer better benefits now and in the future.

• Research gives you enough time to understand and know the ins and outs of a potential purchase.

Whatever your budget might be, conducting extensive research before you make a decision will give you a thorough understanding of every aspect of a prospective investment.

Make sure you learn about all the essential details regarding the property you are interested in and ensure that you are fully satisfied with what it can offer.

The last thing you want is to spend your hard earned money on a property investment, only to find out later on that it does not deliver the returns you anticipated.

No matter how much money you are planning to invest in a property, it is always a wise move to do your own diligence before you make any decision.

Remember “caveat emptor” (buyer beware).

To know and understand all the ins and outs of a prospective purchase means you will be better placed to make an informed decision.

The next time you want to invest in an investment property, don’t forget to conduct research to make the most out of your money and enjoy great returns on your investment.

The post The Importance of Doing Your Own Due Diligence Before You Buy appeared first on Lujo Investments Worldwide.

New UK-wide research suggests the sector can be highly profitable, although some parts of the country are much more profitable than others.

With landlords having to cope with issues like mortgage tax relief changes, the tenant fee ban, and reformed renting criteria, it’s never been more important to maximise your income. Here are my analysis of the UK’s buy to let hotspots.

North West of England is a buy-to-let powerhouse

A report from specialist lender Kent Reliance suggests landlords in the North West of England are seeing the highest rental returns on buy-to-let properties in the UK, closely followed by investors in Yorkshire and the East Midlands. 

The research also shows that returns in the South East and London continue to be muted, as higher house prices reduce the benefits of rents. 

According to the research, the North West delivers the highest returns, with average yields of 6.2 per cent, while Yorkshire and the Humber is close behind with yields of 5.9 per cent, followed by the East Midlands where average yields are 5.4 per cent.

The study measured prospective rent against the cost of buying a property in current market conditions. However, long-term buy-to-let investors who bought at lower prices will probably be generating even higher rental returns.

Capital’s performance dips, though prospects are improving

The picture is not so rosy in the South East, which propped up the rest of the ‘league table’ with yields of four per cent. Meanwhile, London and the East of England did not fare much better, with yields of 4.1 per cent and joint second-to-bottom rankings nationally. 

However, despite London’s relatively weak performance in comparison to other regions, the capital’s yields are still at their highest levels since 2015.

Nationally, the average yield is 4.5 per cent – fractionally up from 4.4 per cent at the end of 2018 – and representing the highest level since the first quarter of 2017. 

Identifying high-yield areas within regional markets

It’s also important to keep in mind that specific areas continue to deliver returns that outperform regional averages.

Another study from letting agent Portico Host revealed that within the North West market, the Liverpool area of Fairfield generates the highest yields of 13.6 per cent, followed by neighbouring Kensington at 9.8 per cent and Anfield at 9.6 per cent.

Why landlords are attracted to university hotspots

University cities with high student populations are particularly attractive as buy-to-let investment locations.

Liverpool, Preston, Manchester, Lancaster, Nottingham, Leeds and the North East have some of the country’s highest rental yields. Among the most lucrative is the NG1 postcode – an ideal location for students at Nottingham Trent University – where the average rental yield is almost 12%.

Advantages of providing student accommodation include regular term times and an ongoing flow of new students, fewer void periods, and the ease with which landlords can find suitable tenants.

Authored by Melvin Lunn

Melvin has over 20 years’ experience in global property sales and investment. For more information on investment in the UK buy to let market contact him 03333 034 767.

The above article is written as a guide only and does not constitute financial advice. Professional advice should be taken before entering into any property investment or financial agreement.

The post What are the UK’s buy to let hotspots? appeared first on Lujo Investments Worldwide.

The influx of international students to the UK, many from wealthy families, has also created demand for a higher standard of student living, particularly in towns and cities with top performing universities.

Furthermore, higher stamp duty and regulatory changes for houses of multiple occupation (HMO) are pushing buy-to-let investors towards purpose-built student accommodation (PBSA).

What is purpose-built student accommodation?

PBSA developments are high-volume, fully-managed developments, usually containing flats and studio apartments along with a host of communal facilities.

They aim to offer a hassle-free student living experience, where a single monthly payment covers rent, bills and other services like broadband.

The facilities on offer in purpose-built student accommodation are growing increasingly luxurious and may include gymnasiums, cinema rooms, and rooftop gardens, as well a concierge service.

This move towards quality means investors in PBSA will usually have no trouble finding tenants, particularly as this role is outsourced to a specialist property management company.

Why is PBSA so attractive to investors?

PBSA can offer investors a reliable and predictable monthly income with minimal stress. While there are regional variations driven by property prices, PBSA investments usually create yields of 8% to 10%, even higher in some areas. Developers of new-build PBSA will typically offer an incentive by guaranteeing this level of return for a period of up to five years.

Compare this to a typical 3% to 5% net yield for traditional buy-to-let investment and you can see the appeal. Another big attraction is the tax treatment of PBSA. It’s classed as commercial property so there’s currently no stamp duty on purchases below £150,000 and no capital gains tax when you sell PBSA.

Will growth in student accommodation investment continue?

A recent report by Savills indicated that investment in student accommodation would rise by 17% this year. There remains a huge shortage of available accommodation in some university towns. Unite Group, one of the UK’s biggest student accommodation providers, said it expects to see rents rise between 3% and 3.5% in the 2019/2020 and 2020/2021 academic years.

The relatively low number of EU students in the UK (just 6% of full-time UK students according to UCAS) means Brexit is unlikely to impact demand for student rooms, with demand from UK and international students remaining stable. The UK education sector remains a strong brand for overseas students and their families.

However, like any investment opportunity, investing in student accommodation is not without its pitfalls. Any investor will need to aware how an ever-fluctuating property market could impact on the resale value and capital growth of a student accommodation investment.

Authored by Melvin Lunn

Melvin has over 20 years’ experience in global property sales and investment. For more information on investment opportunities in the student accommodation sector contact him 03333 034 767.

The above article is written as a guide only and does not constitute financial advice. Professional advice should be taken before entering into any property investment or financial agreement.

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