Posts with tag: student landlords

Rents set to rise for 2016/17 students

Published On: September 5, 2016 at 12:01 pm

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With students busy readying themselves to return back to their university campuses, a new survey might just make them think twice about expensive amenities.

Specialist student utilities and service provider Glide Utilities has conducted an investigation that reveals student rents are on the rise for 2016/17.

Rising rents

According to data from the ‘What Students Seek’ report, rents have risen by £10 per week year-on-year since 2013. This means the average student now pays more than £100 per week in private rental fees.

More than two million students are heading to university this September and this will not come as good news, with many already in severe debt due to rising tuition fees and living costs.

With rents spiralling, students are now quite rightly expecting more in return for their money. The report shows that 67% of landlords are now including bills as standard, the highest percentage ever recorded. This will hopefully make squabbles about gas and electric bills less common!

64% of students feel that double beds are important when considering a room to rent, while 40% said they are only interested in a room with an en-suite. 85% of modern students said that they would not even consider a property without a solid broadband connection.

Rents set to rise for 2016/17 students

Rents set to rise for 2016/17 students

Value

Despite persistently rising rents and worries around debts, 47% of students feel the rents they pay represent good value for money. More than three-quarters (76%) said that they were generally satisfied with their accommodation.

More interesting findings from the report suggest that more students are now using Google to locate suitable accommodation. 59% said that this was the case, as opposed to 25% who use traditional letting agents. 58% use a dedicated accommodation website to find suitable student property, while 44% go directly to the university accommodation office to find their residence.

James Villareal, CEO at Glide Utilities, noted, ‘in line with national rent increases, the cost for private student accommodation is also on the rise, which must be a consideration for students budgeting their time at university. Avoiding additional costs created by bills is one way students can help to manage their expenditure , which is why we’re seeing a greater demand for bills-inclusive rates from students and more landlords offering this a standard. Our report highlights what students are looking for in their accommodation and how they go about finding the right place to meet their needs.’[1]

[1] http://www.propertyreporter.co.uk/property/private-rental-prices-on-the-rise-for-2016-students.html

Which University City Should You Invest In?

Published On: August 24, 2016 at 8:36 am

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Following on from A-level results day last week, many students across the country will be looking to move to a new university city for the first time.

Online estate agent eMoov.co.uk has since released its annual University Property Index, which highlights the best cities in the country to invest in, based on UCAS entry level and property prices.

The agent has ranked the top 100 UK universities by dividing the average house price in the area surrounding the main campus by the average UCAS point entry requirement, to determine the average property price per UCAS point required to study at each university.

Which University City Should You Invest In?

Which University City Should You Invest In?

The research has found which university city in the UK offers the best balance of affordable property for those considering an investment and a top quality higher education.

The average house price in the top 100 university cities stands at £319,963, with the University of Leeds coming out on top. With an average entry requirement of 436.5 UCAS points and an average property price of just £95,310, Leeds has a house price per UCAS point of just £218.

Contrastingly, the Imperial College London is in 100th place, due to the sky-high house prices surrounding its Kensington campus. Although the prestigious institution requires 566.9 UCAS points on average – the third highest in the top 100 – the average property price is a whopping £2.5m, resulting in an average price per UCAS point of £4,431.

The University of Sunderland ranked in second place in the table, with an average UCAS requirement of just 290.5 – the eighth lowest in the top 100 – and an average house price of £65,201. This equates to an average price per UCAS point of just £224.

Making up the top ten are the University of Bradford (£269), University of Leicester (£301), University of Hull (£305), University of Manchester (£308), University of Dundee (£313), University of Strathclyde (£315), Aston University (£320) and Newcastle University (£349).

The complete top 100 can be found here: https://www.emoov.co.uk/university-property-index-2016/

The founder and CEO of eMoov, Russell Quirk, says: “University is often the first life step for those leaving home to study, and the cost implicated in doing so are high, with many not paying off their student debt until years after graduating.

“Investing in a property for your child can be one way of reducing the cost and can act as an additional source of income for years to come. When looking for somewhere to stay at university, as with a job, properties close to the campus are always going to be a more attractive proposition, and so buying in and around the university can help ensure interest in a property from the get go.”

He adds: “This research highlights where across the nation offers the most attractive proposition for a uni-let, in terms of close proximity to the university, an affordable property price, as well as a good level of education where the university itself is concerned.”

Landlords, are you looking for a student property investment in one of these university cities? These tips will help you prepare your property for new students: https://www.justlandlords.co.uk/news/prepare-property-for-student-tenants/

Student Property will be Top of the Asset Class for Landlords, Says JLL

Published On: August 22, 2016 at 9:25 am

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As college students across the UK prepare to go to university, property firm JLL believes student property will be top of the asset class for landlords following Brexit.

Student Property will be Top of the Asset Class for Landlords, Says JLL

Student Property will be Top of the Asset Class for Landlords, Says JLL

JLL’s Student Housing team has projected rental growth of between 3-4% in London and 1-5% across the UK market for student property. Prime yields are also expected to remain robust, with good occupancy rates and attractive income growth for the 2016/17 academic year.

The Director of JLL’s Student Housing team, Huw Forrest, reports: “While it is too early to have definitive views on the impact of Brexit on the student housing sector, it is likely to remain more resilient than other sectors. This is due to the continued attraction of the UK university market, coupled with the depreciation of sterling, which will make the UK a more affordable destination to study for international students. It is also important to remember that EU students make up only 6% of students.

“We are currently seeing good levels of investment demand following the referendum and, generally, transactions we are working on have seen little impact as a result of the Brexit vote.”

JLL’s 5% rental growth prediction for student property is echoed by Jean Liggett, the CEO of Properties of the World, who believes that Manchester in particular will see such growth.

She comments: “The UK provides world-class education in a number of highly regarded institutes across the country. In fact, three of the top ten universities in the world are located in the UK. As a result, there will continue to be a growing demand for accommodation close to these universities, causing an increase in rents that will in turn provide higher returns for potential investors.

“What buyers like about this type of investment, post-Brexit, is the fact that they provide a fixed rate of return, have no extra costs during ownership and mitigate risk, subsequently giving them peace of mind. There will always be a high demand for good quality student accommodation. In our eyes, the sector will remain resilient.”

Manchester is already home to a booming student population, which is only expected to expand again this academic year. A spokesperson for the University of Salford states that it is expecting to see an increase in applicants for the start of the 2016/17 year.

Landlords, are you considering a student property investment? Remember that students can be some of the most reliable tenants, which is vital at this time of economic uncertainty.

Which University locations get top marks for investment?

Published On: August 10, 2016 at 8:48 am

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New research has revealed the most lucrative university cities in Britain, based on property price, rents and house price growth.

Leading London estate agent Chestertons also looked at average property values and typical graduate income in order to ascertain their leaderboard.

Top of the class

According to the analysis, Edinburgh received top marks for being the best university city in which to invest. Also receiving A grades were Bristol and Brighton.

At the bottom of the class were Aberystwyth, Liverpool and Lancaster. This was due to more affordable rents and reduced house price growth.

With the new academic year fast approaching, the league table makes interesting reading for potential windfalls from buy-to-let investment at university towns and cites in the UK.

The top-ten towns and cities providing the best investment opportunities were found to be:

  • Edinburgh
  • Bristol
  • Brighton
  • Reading
  • Oxford
  • York
  • Cambridge
  • St Andrews
  • Southampton
  • Warwick
Which University locations get top marks for investment?

Which University locations get top marks for investment?

Reliable demand

Daniel Killick of Chestertons, noted, ‘student lets are generally seen as great investment; there will always be a reliable level of demand and universities can often be really helpful in pointing students your way. Some locations, however, offer a better return than others. We were keen to get some deeper insights into the UK’s student property market and understand where the most attractive prospects are-and the ones that are less likely to pay off.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/8/top-class-university-cities-for-buy-to-let-property-unveiled

 

 

Over a Third of Landlords Plan to Invest in Student Property This Year

Published On: June 6, 2016 at 8:43 am

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Over a third of buy-to-let landlords plan to invest in student property this year, according to a new report by The Mistoria Group.

The research by the student property investment specialist shows that one in ten student landlords say their Houses in Multiple Occupation (HMOs) allow them to offset the new tax rules introduced by the Chancellor and remain profitable, while a further 50% do not believe any other asset class offers the same yields and return on investment as student property.

Over a Third of Landlords Plan to Invest in Student Property This Year

Over a Third of Landlords Plan to Invest in Student Property This Year

It seems that the new 3% Stamp Duty surcharge for buy-to-let landlords and second homebuyers has not dampened enthusiasm for the student property market.

While the rest of the buy-to-let sector may have slowed down, the same cannot be said for student property investment, according to the group. The report indicates that 35% of student landlords purchased HMO properties in the first quarter of 2016 to beat the higher tax rate, and a further 43% plan to acquire between two and three new student properties over the next 18 months.

If you are considering an investment in student property, here are some helpful dos and don’ts to think about: /student-property-investment-dos-donts/

The Managing Director of The Mistoria Group, Mish Liyanage, says: “Student accommodation can offer a number of attractive features to investors. The yields are high, as students settle for less space than other tenants, occupancy is typically very good, and it is neatly counter-cyclical, as more people go to university during economic downturns.

“Student property is a robust asset class. Since 2011, student accommodation has outperformed all other traditional property assets and has been the strongest growing investment property market in the UK. It has also continued to be one of the most resilient investment sectors, with rental incomes and property values remaining stable or increasing. The attraction of the student accommodation sector has been driven by structural undersupply and positive rental growth year-on-year.”

He advises: “This growth in student numbers is a great opportunity for landlords and investors to provide the right type of property that will attract lucrative students. Student accommodation has proven to provide better rental yields and there is an annual market for new students. What’s more, the rent is guaranteed by a parent or guardian and is paid promptly.

“A high quality HMO in the North West, which will house four students, can be purchased for just £160,000. The return on investment is very attractive too, with 3-8% cash rental and 5% capital growth.”

A separate study by LendInvest recently confirmed that landlords seeking the highest rental yields should look to buy properties in university towns in the North West.

The Dos and Don’ts of Student Property Investment

Published On: May 27, 2016 at 9:53 am

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With record numbers of students attending university, investing in student property can be a lucrative business. But what are the dos and don’ts?

Demand for rental property in many UK towns and cities has been driven by high numbers of students, causing a severe shortage of affordable student property in parts of the country.

Last year, the Government lifted the cap on the number of places that universities can offer by 30,000, causing a rush of students to UK institutions. According to UCAS, the amount of university applicants has reached a record high, with recent data showing a 3% annual increase in the number of applications.

The fastest growing sector is non-EU students, with levels up by 50% over the past ten years.

In the last 20 years, there has been extraordinary growth in student numbers, with the amount of international students expected to rise dramatically over the next decade.

The Dos and Don'ts of Student Property Investment

The Dos and Don’ts of Student Property Investment

House and flat share website SpareRoom.co.uk reports that up to 22 professionals and students competed for every available room in university towns and cities in 2015. Just 40% of rooms in the UK’s top 25 university cities are available to students, as some landlords are reluctant to let to this type of tenant.

The Managing Director of The Mistoria Group – one of the UK’s leading property investment companies – Mish Liyanage, says: “Unfortunately, university-managed accommodation has not kept pace with the growth in student numbers, and this is driving increased demand for HMOs [Houses in Multiple Occupation] and PSBAs in many UK towns and cities.

‘Traditionally, universities were responsible for providing good quality student accommodation. However, over the last ten years, demand for university accommodation has outstripped demand and the private sector has supplemented some of the shortfall.”

He continues: “The student property is a robust asset class. Since 2011, student accommodation has outperformed all other traditional property assets and has been the strongest growing investment property market in the UK. It has also continued to be one of the most resilient investment sectors, with rental incomes and property values remaining stable or increasing. The attraction of the student accommodation sector has been driven by structural undersupply and positive rental growth year-on-year.

“Without doubt, the student rental market is the most financially lucrative for investors and landlords if it is managed well. An investor can currently buy a four-bed HMO in a good location for students and professionals, fully refurbished and furnished and tenanted for the coming year, for less than £165,000 in the North West.”

He insists: “Investing in student HMO accommodation offers a long-term investment option, as the property is highly likely to be in constant demand throughout the calendar year. Typical rents are significantly higher for student properties than a comparable buy-to-let property in the same city.”

If you have decided that student property is the investment option for you, here are some helpful dos and don’ts to ensure you make a lucrative investment:

Dos

  • Find an area with a reputable university that has a good reputation and high ranking.
  • The property should be 30 minutes’ walk or less from the university.
  • Find a reputable and credible letting agent to help you manage the property.
  • Go for student houses rather than pods. Houses have a good resale market and can be mortgaged.
  • Rent prices should be all inclusive of bills and broadband.

Don’ts 

  • Invest in a student pod.
  • Go for off-plan deals where you pay capital upfront and wait for years before you acquire the property.
  • Offer small, cramped rooms with no living space in the house.
  • Cut costs and go for a lower-spec property.
  • Look to flip – student properties are medium to high yielding and long-term investments.
  • Try and manage the property on your own if you have no HMO experience.

If you’re considering a student property investment, now is the best time to get into the market, ahead of the September rush.