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Student Accommodation Investment Leading UK Buy to Let

May 17, 2010Article by Ray Withers

Student accommodation investment is to be one of the most popular forms of UK property investment in the coming 5 years according to international property investment consultancy Property Frontiers. The firm is actively marketing student accommodation investment properties in Liverpool, and believes that the security of returns, as well as their expected size, will be a major draw as the world and its property markets recover from the massive shock that hit us all in 2008.

David Cox, director of the firm said:

“People are back out there and making property investments again. Just like people were investing in property in 2006 and 2007, but that is where the similarities end. In 2006 investors were chasing hard for the biggest returns, and desire to make a fortune superseded common sense in a lot of cases. Not today it doesn’t. Those who are investing in property today are putting safety first and doing extensive due-diligence before making any kind of commitments.

“They are quickly finding that student accommodation investment is well worth a spot on their shortlists. The new property we have just taken on in Liverpool offers yields of almost 10% based on tenant agreements already in place for the year ahead. Because the studio apartments are within range of all 3 Liverpool universities, demand is high, already outstripping supply and only getting higher. Thus, a net yield of 10% year on year is as near-a-certainty as you get in property investment and people are quite happy to buy into such a safe investment.”

The property Cox was referring to is the Streatlam Towers in Liverpool, offering studio “pods” from £40,000. As was mentioned, the development is within a few minutes of all three Liverpool universities, students are already signed up from August, and yields calculated from their rental to 10.02% net.
This is the second Liverpool student property investment that Property Frontiers has marketed in as many months, owing to the success of the first development. Liverpool’s student population is currently 80,000 and there is obviously nowhere near that amount of units in the halls of residence at the 3 universities.

There is also a growing number of students that choose to live off campus, and properties like Streatlam are also perfect for those who have left university as they seek out the beginnings of their career. In short: the supply/demand dynamic continues to fall in favour of demand, increasing the potential, the success and the appetite for student accommodation investment.

For more information contact Property Frontiers on +44 (0) 1865 202700.


Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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