People who invest in student property near to some of the best performing universities could be bringing in better returns, thanks to the fact that students attending these institutions are prepared to pay more for their accommodation.
According to the findings in a survey from Accommodation for Students, the prestige of British education means that those attending the best performing establishments are prepared to pay more in order to secure quality accommodation.
It said that those looking for student accommodation at the country’s top Russell Group universities are generally prepared to pay a premium over the national average of between £20 and £58 per week for their homes.
This is because demand, particularly from students from overseas, is markedly higher around universities where the quality of education surpasses the national average. It means students having to fork out a little extra to secure the property they want, and many are prepared to do so.
This is good news for landlords who invest in student property, as it shows a continued demand for good quality accommodation, as well as highlighting the fact that buying in the right geographical area can really help to bump up returns.
Simon Thompson, director of Accommodation for Students, commented on the findings: “Naturally rental increases in some areas will be governed by student demand, often determined by what courses are available, but it is interesting to see that there appears to be some correlation between the highest ranked universities and cost of student accommodation.”
The Accommodation for Students survey also went on to say that the relationship between student tenants and their landlords is now better than ever, with people who rent now getting more for their money than they have done in the past.
It highlighted inclusive bills as being an important part of the relationship between the two parties, saying that more investors than ever before are now seeing this as the case. For the first time, the number of tenants who are enjoying this benefit is higher than the number who do not.
The benefits of the student market has helped it to emerge as a leading asset class in the UK. This video on The Telegraph with Experience Invest helps to explain why more and more investors are investing in student property in prime university towns and cities.
Image credit: John Allan