Student Property

Student specific property proves profitable for investors

Student numbers continue to climb in the UK with the latest figures from UCAS showing that, in total, 530,000 students were offered a place on a university course in 2017. For the first time ever, applications from international students surpassed 100,000, meaning that the popularity of securing a university education is as strong as ever.

With more than 1.7 million students in full-time higher education in the UK, only 1 in 3 are currently able to reside in student specific property.

In a market that is structurally undersupplied, the widespread rise in demand has led many students secure a room in a privately-operated student development over university halls of residence.

Despite wanting separate living quarters, there is a significant demand for properties with communal spaces where students can socialise. Developments which offer good entertainment, breakout study areas, an onsite gym and comfortable, communal living spaces are a must.

Students are aware of the cost of living and like to factor in the total cost of living – not just the rent. Student specific property developments that offer additional extras, such as free gym memberships, cinema rooms and communal activities, represents a saving elsewhere.

International appeal of student developments

Growing global student mobility has strengthened the need for high quality options that offers a safe and fully managed living space. Developments with on-site management, 24/7 CCTV and secure access are key to attracting overseas students. As the market has matured, high expectations of students have meant that they are willing to pay a premium for the best amenities and onsite services.

As the market matures, international students have emerged as the main target for high-end rooms in student specific property.

Student specific property

Student specific property appeals to investors

Student property is widely regarded as the UK’s best performing asset class.

The sector appeals to investors who wish to diversify their property investment portfolio and secure higher than average returns from a fully managed property. The purpose-built student sector is also exempt from Stamp Duty and rooms are priced at a lower entry level than residential property.

8% NET p.a. assured for 5 years

Experience Invest’s Opto Student Newcastle is a prime example of a high yielding product available in the UK’s student sector.

The development features a selection of highly desirable facilities including a gym, cinema room, study and meeting rooms, a communal games room and a manned reception. The development that contains 223 large and contemporary studio apartments also has a separate two storey events building which is accessible by a landscaped courtyard.

The development’s prime city centre and waterfront location is ideal for students studying in Newcastle – a location that currently has a 64.6% shortfall of student beds.

Investors will achieve an 8% NET rental return per annum for a five-year assured period. For more information about investing, contact Experience Invest to request your complimentary investor pack.


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