Every year, the student population of the UK increases, and this means there is a large demand for student accommodation. In 2015, the government removed student intake caps, but the Brexit vote has not deterred the influx of overseas students, who now account for 25% of the student population.
Many buy-to-let landlords provide rented accommodation for students. There has been a large increase in the number of purpose-built student properties, which have become popular for investors as they are usually run by management companies so that investors do not have to be responsible for the day to day running and maintenance of the property. Many student blocks have staff on site 24 hours a day to provide both security and emergency maintenance services,
It is expensive to purchase a complete block of student accommodation, so many are bought by a number of investors. There can be over 100 investors in large blocks, which means that when furniture or fittings need renewing the investors can share the cost of bulk buying items in order to receive discounts.
Many students are looking for luxury accommodation and are prepared to pay extra. It is possible for many modern well-equipped student blocks to provide investors 8% to 10% returns.
There are a number of finance options available for people who do not have all the money needed to invest in student accommodation. Commercial mortgages at low interest rates for buy-to-let student accommodation can be arranged through a commercial mortgage broker.