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Student Property

Is student accommodation still an attractive option for investors?





With a record level of £5.9 billion of investment in the UK’s student accommodation investment in 2015, the sector is thriving.

Student accomodation is the UK’s top performing asset class. The experts at Savills believe that £4 billion will be invested in student assets in 2016. This shows real potential for strength in investment to continue for many years to come as the sector continues to perform on a mainstream level.

Since April 2016, an additional 3% Stamp Duty levy has been applied to UK buy-to-let property and on second homes purchases however, not many investors realise that student property is exempt from the tax increase.

Pay no Stamp Duty Tax

As Stamp Duty Tax is not paid on UK student property, investors can save between 3% and 15% on their purchase depending on the price of their investment.

Student accommodation tends to cost less than residential property which could increase demand as more people look towards the sector as a way to get onto the property ladder without spending too much initially.

What’s more, student property provides investors with the freedom to buy as many units as they like. Investors can purchase multiple student apartments equal to or more than the value of a residential apartment and save thousands on Stamp Duty tax. There are also no restrictions for overseas buyers.

Where to invest?

Some UK university towns and cities provide better opportunities than others.

Cities like Liverpool, Manchester and Leeds all have a large student population and, despite new student rooms coming on to the market, there is still an acute undersupply of rooms.

Experience Invest recently commented on Liverpool’s booming student property market. Follow the link to find out more.

Commuter belt towns such as Luton and Brighton also can offer investors higher than average returns from student property and they do not carry a hefty price tag like London properties.

For example, Opto House at London Spring Place is our highest yielding investment. Investors will receive 8% NET rental return per annum for 5 years. Each studio apartment will generate £30,152.10 NET income over the first 5 years.