The UK is a great location to buy student property as there is high demand for accommodation among university attendees.
Britain is a good location for student property investments, as it offers high returns for investors.
Giles Beswick, Director of VITA Student, said it is a lucrative move to buy student accommodation in the UK for two main reasons. The first is that there are some of the world’s greatest universities in Britain, while there is also high demand for student properties.
“Student accommodation across the country is running at 99% capacity,” said Mr Beswick.
“It is no wonder that for the second year in a row student property has been named as the UK’s top asset class.”
Investors can expect to earn a yield of 9% per annum, as well as capital gain on the value of the property with VITA Student’s latest project – a development in Manchester city centre due to be ready by September 2014.
VITA Student – founded by residential developer Huntsmere together with Select Property – aims to attract demand for the 280 units in the building by promoting it to the University of Manchester’s 10,000 foreign students, as well as other university attendees.
This type of luxury accommodation will particularly appeal to international students, with VITA Student saying they pay a lot of money to study in the UK; therefore, “if they are paying five star prices, many expect five star accommodation”.
A rise in the number of international students in Britain is likely to boost demand for luxury properties further, after the Higher Education Statistics Agency revealed there were 302,680 non-domicile students at universities in the UK in 2011/12, rising by 1.5% on the previous year.