UK student property is now one of the leading options for savvy international investors. Soaring demand, low supply and exceptionally high gross returns of up to 10-15%, make the student accommodation market a sustainable and lucrative investment opportunity, Made even more attractive with the current weak Pound, which means South African’s can currently benefit from these stable high returns for as little as R2m.
Why invest in student accommodation:
- Low cost of entry
- Hands-off investment
- Guaranteed rents at high returns
- Appeal to overseas market
- Low void periods
Even during the financial crisis 2007/08, when most other asset classes decreased in value, the student housing market remained strong, creating a reliable income stream for investors.
Now, a loosening of restrictions on the number of places that universities can hold, coupled with a growing demand from overseas students, means the UK can simply not keep up with the demand for student housing. The universities can not supply enough and in some cities, like Southampton the shortfall is 21,000 beds.
Long gone are the dreary university ‘halls of residence’, now replaced with modern buildings, attracting a different genre of international students. This new generation of students favour convenience and luxury over price. They want contemporary clever design, luxury fittings and ensuite bathrooms, They are happy to pay more for the ease of having everything under one roof like free Wi-Fi, communal areas, on-site gyms and even cinema rooms.
Our recommendation – Vita Portswood in Southampton:
Vita Portswood is one of the finest student accommodation offerings. The Vita brand has broken the ceiling on tradtional student digs, pioneering a modern way of creating student housing. Their developments are known for cuttting edge design, the ultimate tenant experience, and long waiting lists of prospective occupants. Their lastest offering, Portswood, in Southampton is no exception. The previous Vita student development in Southampton has 100% occupancy rate, 7% annual capital appreciation, and a 5% rental increase year on year. Property in Southampton is expected to see 43% capital growth by 2019, the highest in the UK, where almost 1 in 5 of it’s population is a student.
Investor Highlights
- 21,172 beds undersupply of student housing in the city; enough to let out Portswood 45 times
- Just 6-minutes’ walk from the University of Southampton
- 435 units
- Completing 2018
- 6.5% NET yields assured for 5 years
- Prices from £135,000
These units are selling fast, and the developers will be in South Africa in the next 2 weeks. To book in a complimentary apppointment to find out more about Vita Portswood, please Contact Us.
