Student Property is property specifically designed and targeted for students, normally in close proximity to a university.
Why invest in Student Property?
Increasing Student Population offers long-term returns
With a rise in under 25’s pursuing higher education, the student population is rapidly growing, with over 555,000 undergraduate and 36,000 postgraduate students. In an ever-growing population, the need to degrees is currently higher than other time in history to survive in the UK. To go hand in hand with this, student accommodation demands have risen with over 40% of student’s International students from China and Nigeria. This increase has made it difficult for universities to keep up with the rapidly growing demand for accommodation, in particular non-EU students, expected to rise quickly in the forthcoming ten years.
Universities simply aren’t able to build accommodation fast enough and many universities stipulate that students are only permitted to stay in halls or purpose-built student housing for the first year. Even with these restrictions, not every first-year student will be able to secure university accommodation and when those that are fortunate enough to be housed by their university, as they approach their second year, they will need to start thinking about whom they want to live with and where they are going to rent a privately-owned property.
Student property is considered to be one of the strongest performing assets in the UK. Many investors have described student accommodation as recession-proof because despite the rise in tuition fees combined with the economic fall of the UK, application levels haven’t waivered.
Year Long Student Tenancies
Many students pursuing a degree chose to keep their tenancy during the summer months, for employment and storage reasons and others choose to stay in one property for the duration of their courses which for most is three years but for those in medical school or studying a postgraduate qualification, could extend up to six years.
Specialist Student Accommodation
The desire for luxury student accommodation has increased with it displaying a sign of independence and young adulthood.
Pension Fund Benefit
Financially, planning ahead is the best security you can have for your retirement. Student accommodations will be eligible for your pension fund, however houses and flats will not. Buying your purpose-built accommodation through your pension scheme will not attract income tax and the property won’t make you liable for capital gains on any profits from a sale.
If you’re looking for a property with hands off management, student accommodation is the ideal property investment for you. In a student property, all the repairs, maintenance, tenant disputes and rental payments will be taken care of by the property management company.