Student property investment is favoured by 68% of landlords

Student property investment is favoured by 68% of landlords

Student property investment is favoured by existing landlords and those looking for a new property investment to add to their portfolio.

Summary:

  • UK property owners prefer to rent their assets to students
  • Almost unanimously, landlords report that students make good tenants
  • Much of the stress of property investment can be mitigated by a fully managed PBSA investment

Property investment is well on its way to becoming a mainstream activity in the UK, with over 1.4 million landlords in the country.

Real estate returns are outperforming almost every other investment, as verified by IPD data at the start of the month.

However despite widespread success, there appears to be a clear favourite segment among landlords – and that is student property.

A new report from Glide and Accommodation for Students has revealed 68% of landlords and letting agents prefer to let to students than non-students, while almost nine out of ten property owners report that students make for good tenants.

The research also found that just over a third of landlords and letting agents believe they will successfully tenant their entire student portfolio by the end of May – well in advance of the start of the next academic year.

Yet other landlords are not as confident, with 15% still fearing they will not let all of their student properties before September 2015.

One option that has been increasingly popular is purpose-built student accommodation investment (PBSA). Figures from JLL published this week show investors will spend a record £3.3 billion on PBSA this quarter and with many providers offering fully managed services, the worries of tenanting can be swapped for assured returns over multi-year periods.

As well as letting, PBSA providers also maintain property for investors, making it a truly hands-off asset.

You can learn more about the future of the PBSA by downloading our free guide.

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