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Buy-to-let student property gains momentum with investors, says CBRE





Buy to let student property

Trends in the UK Buy-to-let student property market have offered a number of reasons for investors to be cheerful this year, according to CBRE’s newly-launched Student Accommodation Index.

The real estate services firm highlighted a number of positive trends in research covering the year to September 2018.

During this period, capital values increased by 6.5 per cent year-on-year. This marks a big improvement from the annual growth of 4.5 per cent recorded in the 12 months to September last year.

For investors, this is clearly a positive pattern, as is the recent increase in rents, which showed a three per cent gross increase and 3.4 per cent net growth in the latest surveyed period.

On a national level, annual total returns were 12.3 per cent during the year to September 2018. Buy-to-let student property is now a readily available asset class that offers investors reliable rental returns.

CBRE’s research also examined regional trends, with locations outside central London delivering total returns of 10.5 per cent and capital growth of 4.5 per cent.

Other findings showed that small (fewer than 250 beds) and medium (250-500 beds) properties provided capital growth of 5.8 per cent and 6.2 per cent respectively, fuelling total returns of 11.6 per cent and 12.2 per cent respectively.

Jo Winchester, head of student accommodation at CBRE, said: “This first published Student Accommodation Index demonstrates the continued strong performance of the sector, which has outperformed the CBRE Monthly Index over the last eight years.

“UK student accommodation is now firmly established as a mainstream investment sector.”

For investors looking for the best place to invest in student accommodation, Experience Invest is currently offering a number of opportunities for investors interested in this lucrative asset class, such as Opto Student Newcastle and Aura Student Liverpool.

For more information about buy-to-let student property in the UK, simply contact Experience Invest for more information.

With a range of student accommodation for sale in the best UK university towns, Experience Invest has good investment opportunities available for investors who require no mortgage.