You are here: Home - Mortgages - Buy To Let - News -

Student lets to generate 12%+ yield

Written by:
Buy-to-let landlords investing in student accommodation could enjoy total annual returns in excess of 12% in 2013, outperforming every other commercial property class.

According to the report, Halls, hotels and care homes: the changing face of UK property investment, published by property advice website, student letting has outperformed every other commercial property class over the past year and delivered consistent returns throughout the economic downturn.

The report quotes property agent Knight Frank, which forecasts like-for-like rental growth of 5% from student property next year, and anticipates that total returns will exceed 12%. This prolific growth is echoed by figures from buy-to-let specialist Assetz, which show that investors in this sector are benefiting from net yields of around 6.5%, almost twice the average yields in the wider buy-to-let market.

The consultancy says that limited supply of purpose-built student accommodation, coupled with rising global interest in the UK’s educational excellence, points towards further strong rental growth in the sector. Its Student Property Index highlights the customer base for purpose-built student accommodation in the UK including a very high proportion of overseas students, and it foresees this demand continuing to grow as global student mobility increases further still.

Overseas students have a high tendency to choose purpose-built accommodation in the UK, for a variety of reasons, including security, location and facilities.

Click here to read the full report.


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Employees keen to get their heads around pension changes

Despite over half of the UK workforce not being fully aware of auto-enrolment, those who are aware of the pension...