Why student property stands out from other buy-to-let investments

Why student property stands out from other buy-to-let investments

PBSA (purpose-built student accommodation) rise through the ranks to become one of the top performing asset classes has been nothing short of phenomenal. After being regarded as a niche alternative investment for many years, the growth in student numbers, especially those from overseas, has seen it become of the most popular and lucrative property investment opportunities on the market.

In the space of just three years, PBSA has seen investment levels rise above £11 billion and it has been UK regional cities such as Manchester, Birmingham, Liverpool and Leeds that have benefited the most. All these cities have high student numbers but nowhere near enough accommodation to support them so the emergence of new student developments has been much needed.

The key factors that are attracting investors far and wide to PBSA include the following:

Avoiding void periods – this is the bane of most landlords involved in traditional buy-to-let investments but with PBSA it is much easier to predict. Rents are often paid in advance, especially in the case of international students where parents have put forward the cash. And in most cases, a student will occupy the property from September to early summer the following year so that you can guarantee a long fixed period of occupancy which is likely to get extended.

High yields – The relatively low cost of obtaining stock together with the high demand for PBSA, means that it’s easier to get a good return on your rental yield.

Fully managed – PBSA tend to be fully managed properties so you never have to worry about finding and vetting tenants and dealing with any problems. For a monthly fee you can enjoy strong yields without the hassles often associated with being a landlord.

Sound interesting? If you want to know more about PBSA and where the best opportunities are, get in touch now.