In each of the past five years, student property’s popularity has helped the sector to move increasingly away from being the niche it once was, and into a new mainstream area of the market that few would ever have seen it having the potential to breach.
Continued climbs in terms of student numbers, in particular those from overseas, has meant a rise in demand for high profit student properties, and investors have been only too happy to help meet that demand and continue to grow a market that has continued to exceed expectations.
It has meant that since 2012, student property investment has continued to top £3 billion annually, with 2015 even coming close to doubling that at £5.7 billion, and this doesn’t look like slowing any time soon. But should you be looking to invest in student property in 2017?
Here, we take a look at just a few reasons why you should.
Brexit may have been seen as a real negative for the country as a whole when the EU referendum results were revealed late in June, but for investors in the rental sector, student rentals in particular, it’s not actually all bad.
Uncertainty in terms of the economy often means that people will feel unsure about their future employment prospects, particularly those just leaving school, which can increase the number who apply to university, increasing demand for places, and indeed student property. We saw it happen around the last financial crisis, and the Brexit process is only likely to bring about that reality all over again.
One of the positives about the student market is that it’s much easier to predict than other areas of property. Sure, there are forecasts and predictions put each year about rental increases and demand levels, but long term, it’s hard to be really sure about how the market will perform.
In student markets, this is quite different, however. The simple fact is that there will always be students, and they will always be on the lookout for quality accommodation to live in for a year at a time. This captive audience, and the evergreen nature of it, is one of the main stability features of the student sector.
It’s been a bit of a slow year in 2016 for all investors across the property market, as Brexit uncertainty meant house prices and rental prices stalled a little. However, for student investors, this could change in 2017, making it a good time to invest in the market.
Forecasts at the moment are that as UCAS forms start to come in and people start looking for places to live for the next year, prices will rise by as much as five per cent, improving yields and making it a very lucrative market to invest in once again for buyers.
Of course, many people who invest in property want to put their money into somewhere where they will feel it’ll be safe. This is something that investing in the student property market with Experience Invest can bring you.
When buying property in this way, you invest in purpose built quality accommodation that gives you a guaranteed return for a set number of years when you buy in, which means you can rest assured about your income and your returns until the dust has settled on your investment, making it a safe way to spend indeed.
Free Student Accommodation Investment Guide
If you are looking to enter this profitable sector in 2017, read this new 2017 UK Student Accommodation Investment Guide by Experience Invest. The guide is free will provide you with the latest information about the performance of the country’s best performing asset class. Click here…