Student property is the fastest
growing asset class in the UK property market. The continued high demand from students for good quality
accommodation offers investors a great opportunity to maximise rental yields
and there is also a buoyant second-hand market.
However, with an increasing
amount of student property coming to the market, itââ¬â¢s important that you
undertake your research before you buy.
So, we outline three key questions that you should ask before investing
in student property.
Does the development have planning permission?
Not all student developments will
have planning permission at the start of the buying process. Some properties will be offered for
sale before full planning permission has been granted.
If youââ¬â¢re considering such an
investment, you should bear in mind that any deposit you may put down to
reserve a property may be non-refundable.
If planning permission is refused, you may lose any money you have put
down.
Using a trusted seller can help
minimise this risk. For example,
we ensure that investors are given full disclosure on the status of all
developments, ensuring that youââ¬â¢re fully informed at all times.
Is there a demand for student accommodation in the area?
If youââ¬â¢re looking to make a
student property investment then itââ¬â¢s important to know that there will be a
demand for the property.
Make sure you research the area
to establish that there is a lack of high quality student accommodation and a
large and growing student population.
Universities are struggling to
cater for the high volume of students they receive each year and so many towns
and cities need private student accommodation to meet demand. Make sure there is such a demand in the
area in which youââ¬â¢re buying.
When will the development be ready?
You should check that there are
defined completion dates for the student property that you are buying. If you donââ¬â¢t, you may find that
construction may overrun and you miss the intended student intake.
Get the latest student investment information
