According to recent figures, investment in the UK’s student housing market hit £3.98 billion in the first half of 2015, well ahead of the £2.35 billion for the whole of 2014. (* Source: commercial property and real estate services advisor CBRE).
London saw a record £1.98 billion of transactions across the first half of the year. This growth is a reflection of the number of investors who increasingly see the high performing yields of student property, as a better alternative to buy-to-let and commercial property.
The Mistoria Group, a leading student property investment firm, reports that investment in student property in the North West has risen by 66% over the last 12 months. The firm has seen the largest increase from investors in the South East (65%), and overseas investors (70%).
Mish Liyanage, Managing Director of The Mistoria Group comments: “In some parts of the UK, student housing is limited in numbers and of poor quality, with only student pods and tatty HMOs available.
“Investors have a great opportunity to invest in University towns where there is short supply of quality, affordable student property. We have seen some investors divert a significant amount of their funds from traditional buy-to-let to student property. For as little as £150,000, an investor can buy a four bed HMO in the North West, in a good location for students and professionals, fully refurbished, furnished and tenanted for the coming year.
“A key driver for the rise in demand for HMO student property is down to the huge growth in student numbers over the last few years. According to UCAS, the number of university applicants has reached a record high, as demand for higher education courses continues to rise. Figures published earlier this month reveal that overall there has been a three per cent increase in the number of applications, compared with the same point last year.
“Investing in student accommodation offers an excellent long-term investment option. Typical rents are significantly higher for student properties, than a comparable buy-to-let property in the same city and student property is highly likely to be in constant demand throughout the calendar year.”
The Mistoria Group are high yielding student buy-to-let investment specialists, offering HMOs and arm chair investments in the North of UK, generating combined net cash yield up to 13% (Rental and Capital Growth). For more information on the firm’s current available investments and the services it offers, visit us at mistoriagroup.com or email at email@example.com or call 0800 500 3015.