Despite the predicted decline in the market for private student housing, due to the rise in tuition fees and the expected drop in the numbers applying to study at UK universities, a report by Principal International – the expert property investment company – has suggested that students can still prove to be a profitable option for landlords, provided they do sufficient research into the properties, locations and refurbishment options.
The report indicates that the factors that property owners need to look into before deciding whether to invest in student housing include whether the property is situated close to the college or university, and also whether the local academic institutions are continuing to invest in attracting new students. The Head of Student Housing, Jo Winchester, emphasised these points, while adding that the number of applications for further education in the UK has risen by 80,000 compared to the same time last year:
“Looking ahead, developers will need to consider student numbers and bed-spaces, but most critically the financial strength and popularity of universities in conjunction with the underlying dynamics of the property market.”
Those looking to purchase property with an eye on the student market are frequently advised to consider older, large properties, as these often cost less to buy and offer potential accommodation to several student tenants. Furthermore they can be furnished to a good standard cost-effectively using means such as websites offering DIY kitchens online, as students will be primarily concerned with rent and location, as opposed to expensive fixtures and fittings.