Landlords have been making attractive profits from renting property to students for many years, with this traditionally being one of the more profitable investment strategies. A report published by Paragon Bank revealed that student accommodation achieved 1% higher rental yield compared to alternative buy-to-let properties in 2020. However, with landlord tax changes and stamp duty changes for second properties, some landlords have been selling up and changing their investment strategies.
There is now more onus on finding the right type of property, at the right price, which is why we are now seeing an influx of property investors switching their attention to properties in the North of England.
This shift is due to a number of reasons, including more investment and regeneration projects in northern cities such as Liverpool, Manchester and Sheffield. Better transport links are being developed and the government’s ‘Levelling Up’ programme is also encouraging more property investors to consider opportunities in the northern parts of England.
The other key detail in the return on investment (ROI) calculations is that you are generally able to buy property in northern university locations for much less than around London and the rest of the South of England.
Generating a high ROI is more achievable when you are able to purchase property at a lower price, while still being able to command a good rental yield. Finding the right location with easy access to the local university and offering high-quality accommodation is important in successful investment in student property.
Amazing investment opportunities in Sheffield
Advantage Investment works with developers across the UK to identify the next hotspots for investments, across all different property investment strategies. The opportunities that are emerging in northern cities are increasing and Advantage Investment have several exciting opportunities for new investors, such as Queens Court in Sheffield.
With a huge student population in Sheffield and the city undergoing major regeneration in recent years, the area is ideal for student accommodation investment. Even inexperienced, first-time investors who have never invested before can make good profits by working with an experienced investment company like Advantage Investment.
Investors can leave the more complicated details to the investment company, with the accommodation being fully managed and a guaranteed income. If you have been considering different investment strategies, student accommodation is a lower risk than shares or stocks. With property holding value and generally increasing in value (particularly in the North), there is a good chance of making good capital growth as well as the guaranteed rental yield.
To find out more about the northern hotspots for student accommodation investment, download the student investment brochure from the Advantage Investment website today.