Our Top 10 Student Housing Investment Hotspots

Last updated 29th October 2019 • Ethan MathewsJaeVee

Student, Cities, Nightlife

The UK’s world class universities just keep on attracting students, who are increasingly looking for first class student accommodation options like luxury PBSA’s (Purpose Built Student Accommodation).

Student accommodation keeps on growing as one of the smartest investments for any savvy investor to put in their portfolio.

With thousands of UK and international students looking harder than ever for their perfect student homes, we’ll show you our top 10 student housing hotspots which have proven themselves as great for property investments.

1. Brighton

Quirky, arty Brighton comes up tops in our guide to the best places to invest, as a top player which doesn’t look to face the oversaturation that other cities have had to contend with any time soon.

With world leading research and high levels of student satisfaction in the University of Sussex, and good graduate prospects and research quality from the University of Brighton, thousands of students are set to make their home there.

And it’s a great investment for you - student rents here usually generate between 6-8% gross yields, with many investors using student property to pay into their pension pot.

With the success of PBSA’s like Abacus House and Scape Brighton spurring on new investors, and also generating opportunities with buy to lets for students on a budget, Brighton offers incredible investment opportunities.

2. Bristol

Offering a top 10 university which is also one of the most valued universities by top employers, it also presents investors with an attractive picture.

It’s estimated that the city will need an extra 6,400 student beds by 2028, which gives a great incentive to act as early as possible to reap the rewards.

But Bristol already has huge demand with only 7,000 out of the 51,000 students at Bristol staying at university supplied accommodation - not even counting numbers at neighbouring university, UWE!

3. London

It might be the biggest and not the best, but it’s hardly the struggling market that some exaggerate it to be.

It’s suggested that to counteract the measures from the New London Plan that could see limits on PBSA, investors should look into co-living and build to rent opportunities, plus think about making their homes available to more than just students - which could help you take advantage of the 62% of students who stay in London after graduating.

4. Manchester

With around 99,000 students spread across four universities (Manchester University, Manchester Metropolitan & University of Manchester Institute of Science and Technology) and Salford University, demand isn’t going anywhere.

Fallowfield, Oxford Road, and Disbury are all areas where you can expect a high yield from your rent - and Manchester has recently been ranked in the top 20 average potential yields in the UK!

5. Glasgow

Glasgow’s market for luxury PBSA is positively booming.

The city offers a diverse array of student developments, even including one where students can slide into their lectures!

Over a thousand new bed spaces were built there last year, but demand is only on the increase, and saw around £100m in transactions in 2017.

6. Norwich

This little gem of a city is packed with opportunity, hosting around 19,000 students from around the world in the University of East Anglia (UEA) or NUA (Norwich University of the Arts) and requiring an extra 10,000 bed spaces of PBSA.

There are currently a lot of developments taking advantage of previously empty office spaces.

Existing accommodation is named amongst some of the best in the UK.

7. Loughborough

It’s probably not one of the first places that comes to mind, but this unassuming city is making its mark as an attractive up and comer. 2019 has been a great year for student property developments, with a 440 bed PBSA off Aumbery Gap and a refurb of the old city centre jobcentre both in planning.

It’s an especially good opportunity if you already have property in the area, as you can expect to make about 36% more off rent from student tenants.

8. Sheffield

Subject to transformational regeneration projects over the last few years, Sheffield is an attractive city with a thriving luxury PBSA market, with lounge bars, cinema rooms and even nightclubs all on offer.

There are loads of high profile developments going forward, from a new deal for Crown House, to a new proposal from Yeme Architects.

With Sheffield University’s impressive rankings for both academic excellence and a great student experience, and Sheffield Hallam’s impressive leap in rankings, students will just keep flocking into this student hub.

9. Swansea

Cardiff has long been seen as Wales’ Golden Goose for property investors.

But Swansea is challenging the status quo with the reputation of it’s university growing year on year.

This is a great city where demand is outstripping supply, with 20,831 students in the city and only one new PBSA development planned this year.

With the existing market dominated by the tired old terraced houses that were common place for yesterday’s students, there’s now a huge gap for the greater quality and amenities that PBSA’s provide.

10. Liverpool

Liverpool is only getting better for the student accommodation market.

A great sign is that developments never stay static for long, with the previously halted Paramount Student halls having recently been bought out by a new owner.

As Liverpool is undergoing extensive regeneration plans across the whole city, it’s certainly worth looking at how the proposals and recent developments progress.

Of particular interest is the ‘Fabric District’ which is being earmarked as a creative hub to attract more student accommodation.

Liverpool also has one of the best postcodes for buy to let rental yields, with the L7 postcode (close to both the University of Liverpool and The Royal Liverpool University Hospital) currently generating a potential yield of 9.3%.

Find out more about investing in some of JaeVee's current projects.

Please note, this blog post is not to be considered as investment advice. We recommend you seek independent financial advice and conduct your own due diligence before making any investment.

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