A look at student accommodation and investment in the UK market. Is student property investment still worth it? What type of property should I be aiming at? From http://www.assam-place.com

2. STUDENT PROPERTY INVESTMENT – WHY?
Student property has become one of the highest yield property investment strategies
out there. Why is this?
• Increased Demand – Student numbers have risen considerably in the UK over the
last 10 years
• Multiple Occupancy – you can get 5 or six income streams from one property by
renting out on a per-room basis.
• The market has weathered the recession well, thanks to continuing demand,
compared to the residential market.
• Furnishings can be basic compared to a flat aimed at professionals, saving you
some money.

3. WHAT ARE THE DOWNSIDES?
As with any investment, there are downsides and therefore an element of risk. We go
through a few of them here:
• Investing in purpose-built student housing means you may struggle to sell at a
later date. You will only be able to sell to other investors, as these properties are
unsuitable for residential tenants.
• Student number have dropped more recently. Number of students going to
university are down 4.2% since 2012 – not a huge drop, but certainly something
to keep an eye on.
• You may end up paying more in maintenance and repairs. We all know students
are not the most proactive, tidy people, so you might find you need to redecorate
more regularly with student tenants.

4. WHY NOT GO HIGH END?
Due to an increased financial barrier to entry to university, student accommodation is
becoming aimed more at those in a higher income bracket.
Some london student housing offers a full package. Students are treated to a gym,
concierge service and luxury fixtures and fittings.
This type of
accommodation
doesn’t come
cheap, with
rooms starting
at £199 per
week

5. DON’T FORGET INTERNATIONAL
International students often fall into the higher income bracket too, and their
numbers are increasing in the UK.
Focusing on high-end accommodation aimed at internatioanl students may well be
the way forward in the near future when it comes to investing in UK student
property.