Benefits of Investing in Student Property in the UK?

03 Nov 2019 - by highgrove

Benefits of Investing in Student Property in the UK?

Like every other year, students are preparing for this university admission season, and the opportunity for investment in student properties is on the increase. During the last admission season, there were over two million students in total in the UK’s higher institution.


As a parent, instead of paying accommodation fees for years for your children/wards, it is wiser to invest for your children in real estate. By simply buying a house that can accommodate up to six or seven students, you could be receiving a reasonable rental income on a yearly basis. Even if your children are younger than university age, there is still a great opportunity in this overflowing sector. You can still profit by investing in a purpose-built student accommodation.


  • Student Houses

A significant advantage of purchasing a property (student accommodation) for your child or children is that in a matter of time, they may decide to take full control of property management thereby learning one or two valuable skills for life. Nevertheless, if you plan on doing the managerial work yourself, you can handle it effectively with the help of an agent.


Sometimes, prospective student property owners tend to be concerned about leaving rent collection or collecting rent from these juvenile people who are just outgrowing teen-hood. They believe that there are too many risks involved. It may interest you to know that there are many systems in place for collecting rental fees in student properties.


  • Guarantor Mortgages

This kind of mortgage is even safer for you because the parent or family member of your tenant will agree to repay any debt as a result of their child/ward defaults on loan using their home as collateral. Owners of some other small building societies seem to be active in this kind of business, but most of them expect their tenants to have a part-time job at least.


  • Purpose-built Student Accommodation

According to the UK student accommodation research that was published in 2016, the PBSA market saw an exceptionally productive season with over 74,500-bed spaces sold at a value of approximately £5.6 billion. Although one of the major reasons to start investing in this business is that it comes with reasonable rental yields, it may not be a good idea if you are looking for your capital income. PBSA may have a low market of buyers when you want to sell.



As a prospective investor, you should always seek out information on where and how to carry out an investment. Even when you are not permanently residing in the same province where your children or child may be studying, you can always educate yourself with information from industry-insiders. This will help you to decide on the best place and time to invest.


For more information about student property investment the UK, contact Highgrove Consulting at

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