Posts with tag: student property

Demand for Shared Student Accommodation Surges in North West

Published On: September 8, 2017 at 9:02 am


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A shortfall of student beds in university halls of residence has led to a surge in demand for high-quality shared student accommodation in the North West, particularly Liverpool, according to The Mistoria Group.

Demand for Shared Student Accommodation Surges in North West

Demand for Shared Student Accommodation Surges in North West

The property investment specialist has seen demand for shared student accommodation surge by 35% in the city over the past year.

Demand for shared student accommodation is growing due to rising numbers of students attending the three universities in Liverpool. Last year, there were 60,000 students studying in the city – up by 20% on the previous year. It is expected that numbers will rise again this year, with 60% of these students requiring accommodation.

Many universities don’t have sufficient accommodation to meet demand from first-year students – who usually live in the university’s halls of residence – creating demand for privately owned accommodation.

According to Student Accommodation Tracker, just 28% of student accommodation currently meets rising expectations.

Mish Liyanage, the Managing Director of The Mistoria Group, says: “There is a very real shortage of quality student accommodation in Liverpool, and demand is consistently outstripping supply. The number of student rooms has swelled over the last five years, but there still remains a shortfall.

“We have seen a surge in students looking for high quality, HMO [House in Multiple Occupation] accommodation with close proximity to the universities, and occupancy across our student accommodation is at 98%.

“Shared student accommodation in Liverpool gives investors excellent yields. There are many areas of Liverpool that are ideal for student property investment, such as Kensington, Wavertree, Toxteth, Kensington Fields.”

He explains: “Investors can acquire a high quality, three-bed HMO, which will house students from £120,000 onwards. An average room in an HMO can be rented for £85 per week including bills, but ensuites can be as high as £110 per week. The return on investment is very attractive too, with 13% (8% cash rental and 5% capital growth).

“Student property is the fastest growing sector of the market, giving investors strong returns that are well ahead of standard BTL [buy-to-let]. The growing numbers of student tenants in Liverpool is driving demand for quality accommodation in the city, and this is likely to be a long-term trend.”

Liyanage adds: “Liverpool is the UK’s top buy-to-let hotspot, delivering investors average rental yields of 8%, once mortgage costs are taken into account. As housing and mortgage costs have the biggest influence on yield, Liverpool takes the top spot, as it has a combination of low average house prices and strong rents.”

Landlords, with demand for shared student accommodation surging, investment in this type of property could prove a lucrative long-term option for your portfolio.


Northern University Cities Dominate Best Investment Hotspots

Published On: April 4, 2017 at 8:13 am


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Northern university cities dominate the list of the best buy-to-let investment hotspots in the UK, according to recent figures.

Research found that half of the top 20 best buy-to-let investment hotspots are in northern university cities. Manchester – home to the University of Manchester and Manchester Metropolitan University – offers buy-to-let landlords a potential average rental yield of 6.73% – the best in the UK.

In addition, Salford – in the metropolitan borough of Greater Manchester – offers investors a very respectable student property yield of 6.68%.

Northern University Cities Dominate Best Investment Hotspots

Northern University Cities Dominate Best Investment Hotspots

Portsmouth – home to the University of Portsmouth – came in third place, with an average yield of 5.75%. Meanwhile, Leeds, Cardiff and Coventry were close behind, with average returns of 5.67%, 5.59% and 5.59% respectively.

Plenty of UK cities saw growth in average yield, with Hull – where the University of Hull is based – experiencing the greatest average yield increase of 0.31%, closely followed by Luton – home to the University of Bedfordshire – with a rise of 0.31%, and Rotherham, at 0.28%.

The study also found that cities hosting the very best UK universities were not necessarily the best locations for buy-to-let investors.

Despite being home to the fourth best university in the world and boasting alumni such as Charles Darwin, Isaac Newton and Stephen Hawking, Cambridge actually has the worst average rental yield, at 2.7%.

Oxford – host to the current number one university in the world – also followed this trend, with an average return of 3.9%.

Chester was found to be the second worst investment hotspot for landlords. Home to the University of Chester, the city recorded an average rental yield of just 3.04%.

Chelmsford, home to Anglia Ruskin University, followed closely behind, at 3.07%, with Wolverhampton and Carlisle not far off – 3.27% and 3.29% respectively.

Even London – home to King’s College London, the London School of Economics and the University of London – recorded an average rental yield of just 3.25%, ranking the fourth worst in the UK.

It seems that the best investments really are found in northern university cities!

Danielle Cullen, the Managing Director of, comments on the findings: “For anyone looking into investing into student property, it’s important to assess the potential yields in the area. It’s really interesting to see that the cities that contain the best universities actually offer the worst yields, and just a little bit of research will uncover this for potential investors.

“Yield is a bit of a buzzword for investors, but often, a lot of people don’t actually know how to work them out, or how valuable knowing that information is. I would strongly advise spending a bit of time learning about the importance and how you can optimise them to ensure you get the best possible return on investment.”

She continues: “I would also express though that yields aren’t everything you need to know. There are a lot of other factors a landlord should consider before investing, such as proposed vacancy rates. For example, if the property will be vacant over the summer in a student let. Or, if it’s more attractive for a certain type of tenancy, such as short-term lets where there is likely to be a higher rate of vacancy, but perhaps the potential of higher rents.”

Private Student Landlords Left Behind as Private Halls Investment Grows

Published On: February 24, 2017 at 9:55 am


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Private student landlords are being left behind as investment in private halls of residence continues to soar, according to lettings portal

Private Student Landlords Left Behind as Private Halls Investment Grows

Private Student Landlords Left Behind as Private Halls Investment Grows

One of the UK’s largest student property developers has recently set out plans to invest more than £300m over the next three years to create an additional 7,500 student rooms across the UK.

This news follows shortly after the student property specialist revealed a strategy shake-up to target more towns and cities with high-performing universities.

This academic year, the group has opened five new properties, creating 3,000 beds, in addition to 4,800 in ongoing projects for 2017. In the next three years, a further 7,000 beds are set to be created in new private halls developments across the UK.

The Managing Director of StudentTenant, Danielle Cullen, warns: “We’re currently seeing a student rental crisis in many areas in the UK. As a growing imbalance between supply and demand develops, rental prices are increasing, making it a less affordable option to study away from home. The student rental market is desperate for investment and it’s great to see vast amounts of money being spent.”

With over 1.7m students in full-time education in the UK and almost 60% of those living away from home, demand for student housing is high.

As for supply, 53% (230,000 beds) of total purpose-built stock is university-owned, while 47% (200,000 beds) is privately owned by private hall investors and landlords. But as investment in private halls rises, there are growing concerns for private rental housing.

What is uncertain, though, is the impact that this will have on the residential shared housing market and private student landlords. In 2015, private halls only accounted fro 6% of the entire student property stock. In recent years and based on development plans, this is set to significantly increase.

Some cities have recently had new private halls of residence developed, causing a handful of private student landlords to be left with unlet properties at the end of the last academic year.

StudentTenant is worried that this trend of leaving private student landlords behind will stick.

Cullen continues: “Whilst investment into private halls is great for students and competition, it will have a huge impact on private landlords in the areas of investment. Traditionally, private halls were always the higher end of the market in terms of both quality and price. Now more developments are completing, however, creating more competition, the price points are lowering, leaving some private landlords in trouble.”

What Does the Housing White Paper Mean for the Student Rental Market?

Published On: February 9, 2017 at 9:14 am


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Since the Government released the Housing White Paper on Tuesday, many industry experts have rushed to respond to its content. But what does the controversial document mean for the student rental market?

What Does the Housing White Paper Mean for the Student Rental Market?

What Does the Housing White Paper Mean for the Student Rental Market?

On Tuesday, the Government unveiled new plans that it hopes will stimulate the housing market, encouraging more property development and making renting a more affordable option.

In the White Paper, titled Fixing Our Broken Housing Market, the Government set out its plans to boost the supply of new homes in the UK and make renting cheaper for the country’s tenants.

One measure, to introduce three-year tenancies, has been met with open arms from some in the industry, while other industry bodies believe that the Government has not shown enough support for individual landlords, who make up the bulk of the private rental sector.

Indeed, the document has been met with mixed feelings from experts in the property industry, with some believing that renters will actually be worse off following the announcement., which deals with the student rental market, acknowledges that the Government has taken a radical approach towards fixing the housing market.

Some of the key promises from the Housing White Paper are to support and speed up the process of developing properties, providing access to households who are currently priced out of the housing market with the Affordable Homes Programme, and making renting a more viable long-term option for private tenants.

Danielle Cullen, the Managing Director of, agrees: “We do need to protect those who are renting more, as there has long been a crisis of a lack of supply of affordable rental stock. Governments have always focused on ownership, with schemes like Help to Buy, but have seemingly always left the rental market out in the cold.

“It’s encouraging to see the Government is finally putting in place structured policies to benefit the rental market, offering people a chance to save money whilst renting. Over recent years, it’s become a trend for those who rent properties to spend around half their income on renting a property alone – and that’s without bills. Demand has significantly outgrown supply in many places in the UK, which benefitted everyone except renters, so hopefully we will finally see changes to make it a fairer market for everyone.”

But will the changes make the student rental market fairer?

Cullen explains: “This does, however, leave an area of uncertainty in how this could impact the student rental market and investment into student letting properties. We could see an increase in buy-to-let properties in the UK, but landlords could be more inclined to privately rent to families and professional couples rather than students. We’re not sure what this means for the future of student rental properties. The Government could be fixing the rental market in general, but at the expense of student housing, where we know there is already a distinct shortage in a number of areas.”

Do you invest in the student rental market? Make sure to keep up to date with any future announcements concerning the sector at

Landlords, Prepare for the Rush of Students Looking for Homes

Published On: December 30, 2016 at 11:45 am


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Online student lettings platform has addressed the alarming problem faced by landlords and tenants every January – the frantic rush of students looking for homes for the following academic year.

Landlords, Prepare for the Rush of Students Looking for Homes

Landlords, Prepare for the Rush of Students Looking for Homes

As the majority of housing lists are released after Christmas, landlords and student tenants are forced to rush through the lettings process for the start of the autumn term.

By limiting the flow of housing and releasing it all at the same time, both landlords and students face an incredibly competitive market, warns StudentTenant. In addition, the process is not ideal for current tenants who constantly have students looking for homes coming through their properties.

And the competition at present is at its worst – StudentTenant recently revealed that some students have been forced to camp outside their universities due to a chronic shortage of accommodation. This ultimately feeds a vicious cycle, as first-year students are stuck without much choice for housing, due to the majority being accounted for months before by older students.

The firm believes that the solution to this pattern is to have ongoing properties available to students looking for homes, to minimise the pressure on finding accommodation. However, it is a common practice to begin searching after Christmas, with students under the impression that the best properties are the first to go.

StudentTenant warns that this whole process is disruptive to the main reason that students go to university – to study.

Landlords, it may be a good idea to wait until after the rush to put your student property on the market. As demand for student housing is consistently high, you are extremely unlikely to suffer a void period and will provide housing to those fearful that they’d missed out on a good property with a responsible landlord.

Danielle Cullen, the Managing Director of StudentTenant, comments: “StudentTenant always has a steady flow of housing options, and we ensure that students are aware of the legal implications involved with signing a letting agreement with friends. Regardless of the rationale behind this tradition, students always seem to return to university from the Christmas holidays to start frantically looking for and booking next year’s accommodation.

“We encourage students to be sensible – they should be confident in their group of friends and find a place that is comfortable. However, the best places do go first, and it has become a trend to see the second and third years, who have already developed strong bonds, showing more organisation as they look for housing.”

Liverpool experiencing surge in student property demand

Published On: December 13, 2016 at 10:23 am


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Liverpool’s student population is continuing to surge, with numbers increasing from 50,000 in 2015 to 60,000 this year.

As such, demand for high-quality student property in the city is also on the rise. Boasting one of the largest universities in the UK, 60% of Liverpool’s students require accommodation.

Soaring student demand

New research from The Mistoria Group indicates that there has been an increase of 37% in demand for shared student properties in the city and surrounding regions during the last 18 months.

Good quality, HMO properties are in serious demand, as are purpose-built developments throughout the region.

Data from the report shows that Liverpool offers some of the greatest rental yields outside of London, around 5.15%. In the capital, returns are fairly low-4.86% in outer London and 4.71% in the centre.

Despite London being a popular buy-to-let hotspot, The Mistoria Group’s research reveals that the North West has been the best area for yields during the last five years.

Scouse success

Mr Mish Liyanage, Managing Director of The Mistoria Group, noted: ‘Liverpool is becoming a city for property investors with more building applications being filed every month. We have seen a steep rise in buy-to-let investors looking for refurbished property within 3 miles of the University – up 28% year on year.’[1]

‘Liverpool is a booming University City and it gives investors the opportunity to acquire high yielding property with excellent occupancy rates. Research shows that Liverpool is one of the  UK’s top five largest rental markets outside of London. Many post graduate students are staying on in the city to work and this is driving demand for affordable, but high quality rental accommodation,’ he continued.[1]

Liverpool experiencing surge in student property demand

Liverpool experiencing surge in student property demand


Liyanage noted: ‘The city is undergoing a significant redevelopment, with more than £1bn of projects, including a 34-storey triple tower residential development. There are a total of 10 developments, which are set to transform the city centre.’[1]

‘As we mainly specialize in student lets Rent prices of our properties start around £85 per week per room including bills but on ensuits they can be high as £110 per week.  For example, in L6, L7, L8 and L15 post codes are very popular with the students and Investors can acquire a high quality 3 bed  HMO which will house for students, from £120K onwards.  The return on investment is very attractive too, with 13% (8% cash rental and 5% capital growth),’ he concluded.[1]