When we talk about student property investments, many people instantly picture giant, purpose-built student accommodation (PBSA) schemes, with dozens if not hundreds of students living on site. However, the COVID-19 pandemic has impacted student accommodation, just as it has affected almost every other area of daily life.
The need to socially distance means that many students are looking at the merits of renting privately when they return to or start university this year. The idea of mingling intensively with so many other students every time you leave your room is somewhat less attractive when you overlay it with a global health pandemic.
This presents an interesting opportunity for buy-to-let landlords.
“Buy-to-let apartments in city centre locations have long been attractive to investors due to the continuing demand from working professionals for well-located rental homes. However, it’s not just city centres that are delivering the goods when it comes to buy-to-let returns. Areas local to respected universities are generating plenty of interest from investors right now.”
Dale Anderson, Managing Director, Fabrik Invest
The Times reported at the start of the 2019/20 academic year that the boom in university admissions was driving a student housing shortage. A year later and the chaos over A level results has led universities scrambling to work out how they can take in thousands more freshers – all of whom will need to find local accommodation.
While PBSA schemes take years to conceptualise, plan and develop, as well as raise funds, investing in student buy-to-let apartments is as easy as investing in, well, regular buy-to-let apartments.
“With buy-to-let investment there is a clear business model in place that shows investors what they are likely to earn over the years ahead and for which there is a clear exit strategy. It’s a more established, tried and tested model of student accommodation investment, as well as being more versatile in terms of the range of properties available.”
Dale Anderson, Managing Director, Fabrik Invest
An example of the ideal buy-to-let development for students is The Roscoe in Liverpool. Located in the central L1 postcode district, the development provides contemporary one-bedroom apartments that are ideal for both students and young professionals.
Just seven minutes’ walk from the University of Liverpool and Liverpool John Moores University, The Roscoe means students can easily get to class on foot, as well as being able to access the delights of the surrounding Ropewalks creative area and luxurious Georgian Quarter.
Apartments at The Roscoe are available from £135,950, with a current offer of up to £10,000 off the asking price (limited time only). A net yield of 6% is guaranteed for two years.
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