Investing in Student Housing: Is It a Smart Move?

Benefits of Investing in the UK’s Student Housing Market

From a steady income source to the potential for wealth appreciation, investment in student housing offers varied benefits. Some of the top advantages are:

1. Stable Rental Income

Student housing is the best option to generate a stable rental income as students usually sign rental agreements for longer periods. Investors can get a good monthly income throughout the academic year. Investing in student housing also involves low maintenance costs compared to owning a residential rental property. Student housing is also associated with secure rental income because parents act as guarantors for their children’s rent

2. High Rental Yields

With a high demand for student housing across the UK, the investment in student residences offers high rental yields. Students tend to share accommodation and a landlord can charge high rent per person or square-foot basis. Accommodations near educational institutions can yield higher rents due to the convenience factor. To calculate the rental yield potential of a property use the free rental calculator of Estate Agent Power.

3. Capital Growth

The demand is not only for student accommodation that offers good rental yield, but it also has the potential for a capital uplift. A landlord can get capital appreciation through increasing property values, which also increases a property’s market value. Properties in proximity to colleges and universities witness more increase in market value.

4. Tax Benefits

Investment in rental properties comes with various tax benefits in the UK. A landlord can apply for tax relief on mortgage interest and property taxes leading to maximising benefits. Landlords can also use property maintenance expenses to write off taxes and reduce taxable income. Student housing is a long-term investment as more and more students are turning to the UK for studies contributing to increasing demand for student residences.

Investing in Student Housing: Factors to Consider

Investment in student housing is no doubt a lucrative option to generate stable and regular income. However, for a successful investment, you need to consider various factors to make informed decisions. Here are some important considerations:

1. Location: For best returns choose a property close to universities or colleges to attract students.
2. Property type: Evaluate demand for different types of student accommodation and invest in the right type of property. Popular student housing properties include en-suite rooms, shared houses, or purpose-built student flats.
3. Rental yields: To check the chances of rental yield it is also helpful to learn about average yields in the selected area to determine its profitability.
4. Exit strategy: Never rush when investing ensure that you always keep an exit plan ready like selling the property or continuing to rent it.