9 Best locations to invest in student property

If you are looking to invest in student accommodation, then you will want to research what areas to invest in. It is not the same as residential where you can essentially invest anywhere with a chance of success.

A run through of our favourite locations for investing looking at student property…

1. Manchester
2. Liverpool
3. Birmingham
4. Sheffield
5. Leeds
6. Nottingham
7. London
8. Lancaster
9. Edinburgh

The key metrics to look at…

Established universities

Firstly, look at locations with the most established universities. These come with a higher guarantee of ongoing student populations. Oxford or Cambridge would be the two strongest examples. But there are plenty of other would famous Universities in the UK.

 

Russel group and Red Brick University locations

Outstanding Universities are popular nationally and internationally. The international student pool will typically bring higher rents as wealthy individuals from places such as China will send their children to study.

 

To check out the Russel group of Universities go here https://russellgroup.ac.uk/about/our-universities/

 

The more exclusive list of Red Brick Universities only has 9 members…

• University of Birmingham
• University of Bristol
• University of Leeds
• University of Manchester
• University of Nottingham
• Newcastle University
• University of Sheffield
• University of Liverpool
• University of Reading

These are all 19^th century universities that established themselves in the Industrial age, not necessarily the best as Oxford, UCL and Cambridge are in their own league.

 

Student population

Obviously, you will want a location that has a high demand of students. Some of the biggest student locations in terms of population are Manchester, Sheffield, Nottingham, Birmingham, London, Liverpool and Leeds.

 

Football links

This is not an obvious one, but there does seem to be a strange correlation with the popularity of university locations with the corresponding football team. This is most evident with international students.

The reason for this is truly unknow but could be several factors, for example…

• The revenue a football team such as Manchester United bring to a city driving economy and overall growth

 

• The branding a football team brings to an area – Manchester is the most obvious one followed closely by Liverpool. Both well-known football clubs and universities

 

Under-supply

A savvier or risk-taking investor may look at locations that are overlooked and undersupplied in a hope that the demand for student property will see them gain higher yields, higher occupancy and a property price increase in the long term. An example of this may be Lancashire University, not as well known but still a massive student population and a lot of current investments

 

Places to invest in student property….

Manchester

Manchester continues to be one of our favourite property hotspots for investors thanks to a range of reasons…

• 2 major universities
• Highest percentage of young people than anywhere else in the UK
• 100,000+ students
• 20,000+ overseas students

Liverpool

Liverpool is like Manchester in many ways and is located closely too. Things are merely on a slightly smaller scale.

• 2 major Universities and several smaller ones
• 50,000 + students
• Massive past and future regeneration

 

Birmingham

Birmingham is the UKs second largest city and often a good alternative to those who want to invest in London but find the entry price a little too high.

• 100,000 + students
• 5 universities
• HS2 line under 1 hour to London
• Massive regeneration pipeline

 

Sheffield

Sheffield is another of UKs major cities and is centrally located in the UK.

• 60,000+ students
• Under supply of purpose-built accommodation for students
• Low cost of living attracting students
• Lots of current and future regeneration
• 2 major universities

 

Leeds

Leeds is a well-established university city. Although it has recently suffered cuts from the HS2 project it remains a major student destination, and nothing is set to change that.

• 60,000 + students
• 9,000 + international students
• Shortfall of PBSA (Purpose built student accommodation)
• 4 universities
• One of largest cities in UK

 

Nottingham

The historical location of Nottingham is a very popular location for students, with fantastic Universities and very affordable living prices.

• 2 major universities
• 55,000 + students
• Popular student location

 

London

London is likely always going to be a safe place to park your money. Although returns may not be as high as other locations, it is popular for very wealthy individuals to buy property and to also send their children to work and study, especially from overseas.

• Many Universities
• Largest number of students
• UK capital
• Will likely always be a market

 

Lancaster

Last year at Fabrik we took on a development to serve the students of Lancaster University. The purpose behind this was because the university is growing, the area is being regenerated, and there is a major under-supply of student accommodation. In addition to that the main campus of the university is located outside of the city, and there were no purpose-built accommodations for anyone beyond the first year within the area.

• Undersupply of PBSA
• Lots of current and future regeneration
• 13,000 + students in the city

 

Edinburgh

Scottish cities benefit students in the fact that university fees are far lower. For the Scottish they are free and for other UK citizens they are greatly reduced. It is also a major British city being the capital of Scotland

• Capital of Scotland
• 3 universities
• 75,000 + students

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