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Student Property Sure For Sale

January 14, 2010Article by Ray Withers

Investment in student accommodation is an upcoming trend in the world of UK buy to let. It is a safe, reliable income, and with the current availability of property well below market value, it is also a high yield income if the investor chooses carefully.

“When investors look at student properties for sale, there are three main factors,” said David Cox, director of international property investment consultancy Property Frontiers.

“Keeping the rent affordable for students whilst still making a decent yield, having to chase around after tenants to keep the place clean and receive the rent, and making sure there are no wild parties,” Cox explained.

Cox then said that the first two are down to the landlord conducting his due-diligence as thoroughly on the potential tenant as on the property — within reason. The third one can be eradicated by choosing the right property, said Cox,

“When it comes to student properties for sale, we think ours is one of the best, because it available at a massively reduced price, especially taking into consideration the refurbishment and modernisation work the block and the individual apartments have seen done to them. We are selling studio apartments in central Liverpool, within walking range of 2 Liverpool universities, because they are quite small, they will keep parties to a minimum,” he said.

“It is little wonder that these studio apartments have enjoyed 100% occupancy, 51 weeks of the year every year since the modernisation work was completed,” he added.

The student properties for sale currently being marketed by Property Frontiers come in the form of the Beacon House development in Liverpool. Beacon House offers studio apartment rooms from £38,000 each. In 2007 studio apartments like these would have been for sale from anywhere from £55-£80k.

Demand for student accommodation in Liverpool has been growing by around 12% per annum for the last few years. Beacon House apartments have tenants already in place, which gives them immediate cash-flow and expected 10% yields.

A yield of 10% on such a property would have been unthinkable before the crash, but now that the prices are a lot lower, the rents are about the same but the yield is much higher. Another reason why you can earn a better yield on student properties, is that the marketing is a lot cheaper; practically all you need is a sign saying student accommodation, an ad at the local universities and bob’s your uncle.


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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