The latest report from the Mistoria Group has revealed that the average student rent in the North West has jumped by as much as £35 per week over the last four years.
This year is set to record the highest number of students attending University, with a rise of 3% year on year. With an extra 30,000 University places offered, UCAS reported earlier this year that they were expecting to top 500,000 applications in 2014, which would be a record.
Mish Liyanage, MD of The Mistoria Group explains: “Whilst the number of students are rising, so are the costs of rent for student accommodation, providing investors with much higher yields. A HMO (House in Multiple Occupation) property can provide an 8% minimum cash yield, though we provide a typical 13% cash yield, including 5% capital appreciation. A HMO is fully mortgage-able and earns money from day one. It also provides a regular monthly income, in a market that continues to increase and demand for supply.
Industry figures show that international students in higher education are to grow by 15%-20% over the next five years. There is no cap on the number of students who can come to study in the UK and no intention to introduce one. This will drive demand for quality student accommodation across all University cities in the UK.”
This article first appeared in Property Reporter on 28th November.