Ethical developer sees rental yield boom as student city expands

An ethical property investment is claiming impressive rental yields on student accommodation in the north of England.

The Integritas Property Group says the region is seeing a boom in demand for high-quality properties from its growing intakes of UK and international students following investment in higher education facilities, putting the region on the map as a go-to city for education and training.

IPG says its schemes like Optima in Bradford and the nearby completed Bijou student living project are successful.

The student population in Bradford is currently over 42,000, with 30 per cent of students arriving from 130 countries, as the university offers 352 undergraduate courses and 213 graduate courses.

With University of Bradford only having 1,004 units available for student accommodation, comprised of two managed halls of residence and 34 four-story townhouses, there is huge need for new, highly quality student accommodation across the city.  

Mitchell Walsh, chief executive at IPG, says,: “By providing students with first-class living options, IPG is offering investors a lucrative opportunity to invest in a growing metropolis.

"Decent student accommodation in a city near their place of study is often a challenge to find – as a result, students are then pushed further out into the suburbs, which adds extra pressure to their day whilst increasing social isolation.

“Our Optima development is strategically located in the heart of Bradford city centre, giving students easy access to the city centre, nightlife, and the university.” 

The big driver in student accommodation demand is growth in Postgraduate Taught international intakes, with the University of Bradford coming 15th in the top increases in full-time PGT study numbers in the UK in 2021-2022. 

The Optima development features 54 student pods and four accessible studios, with shared access to a fully fitted kitchen, a laundry room, and a large open-plan living space for student socialising and aims to be complete ahead of September 2024. 

Walsh concludes: “Investing in the property market in Bradford right now is a wise decision as the rental yield is currently at an impressive 8.25 per cent, some 3.0 per cent higher than the national average." 

Units for investors, starting from £78,000, have a 999-year lease. These units offer an 8.25 per cent rental yield, and all units come fully furnished and managed.