Student Property
Student Property

A short overview of student property in the UK

With more than 2.2 million students studying in the UK, there is a high demand for student accommodation. Student accommodation has evolved drastically over the past couple of years, with tenants now wanting and expecting to live in high-quality accommodation in the heart of their chosen city. Students no longer look to stay in large, multiple occupancy properties, but instead search for more private, modern accommodation. Before university accommodation campuses were the place to stay, but nowadays most students prefer living nearer to the city.

The growing demand for student properties and the shortage of supply makes this the ideal investment for those looking to expand their real estate portfolio in the UK. Overseas students are also a major driver for returns, with the size of this group expected to rise by 15-20% in the UK over the next 5 years. What was an outsider’s choice of investment ten years ago is now a solid financial decision, with high returns and steady annual rental prices.

The student accommodation investment options on offer at Herald Land are all within close proximity of the cities’ universities and local amenities, making them the ideal choice for students interested in living in the centre of university life.

The benefits

High returns of up to 10% per annum
Managed by respected third parties
The shortage of supply means they are high in demand
Only a small amount of investment is needed
Low risk investment, with tenancy rates in the high 90% range
Q StudiosStoke-on-Trent

Q studios are located in Stoke-on-Trent, just an hour’s drive from both Liverpool and Manchester, and a 90-minute train ride from London. This new build, 300-studio student development, ideally situated between two established universities, was built by an award winning developer. Professional onsite management and a range of excellent facilities, including a gym, cinema and study centre, further enhance the attraction of Q Studios to tenants and property investors alike. With 10% new fixed yields for 10 years, an optional 5% interest on deposited funds during build and an independent 10-year structural warranty, investing in this student accommodation is flexible, easy and hassle-free.

Scholar's VillageBradford

Located in the bustling city of Bradford, close to the city’s £750 million learning quarter, Scholar’s Village provides quality student en-suites with an excellent range of facilities and only a two-minute walk from the university campus. The city is the fifth largest in the UK and is home to over 38,000 students, with the university planning for a 30% increase in numbers by 2024.

Investing in this development will provide buyers with an immediate 8% NET income, a 10-year fixed income period and contracted yield increases in year 3 (9% NET) and year 5 (10% NET). The investment also boasts fully flexible resale options and a full 250-year leasehold ownership.

Cardiff Student Village (Phase 2) Cardiff

Cardiff Student Village is an exceptional opportunity to invest in an off-plan student accommodation development in one of the UK’s most active student cities. With studios starting from only £62,500, investors will receive a 9% net rental return, with a 5-year rental assurance and 5% interest on the deposit. Scheduled for completion in Q1 2018, at present Cardiff is home to over 44,000 students, with this figure set to rise as the reputations of the city’s universities increase. Centrally located within close proximity of both Cardiff Metropolitan University and Cardiff University, the fully furnished studios include a double bed, kitchenette and en-suite shower room. Ultra modern in design, the development boats laundry services and reception rooms, with each unit finished to the highest of standards.

Phoenix PlaceLiverpool

Located a mere 15 minute walk to all 5 of the universities in Liverpool, Phoenix Place will consist of a total of 348 en-suite and studio apartments split across three phases. Close to bars, restaurants, supermarkets and transport links, the development offers investors a lucrative opportunity to benefit from a secure investment boasting above average returns. Prices start from just £49,950 for en-suite units and £57,950 for studio apartments and rental income is assured at 9% net for 5 years with a 5% interest on all deposits during construction.

There are over 70,000 students in Liverpool, and 36,000 of those require student accommodation in the city centre. At present, Liverpool is going through a period of redevelopment, with an estimated £200millon being ploughed into the local vicinity over the next two years, making this the ideal time to buy student accommodation in the city.