The student population across the North has increased over the years. Cities, such as Manchester, Liverpool and Sheffield have been grossly affected by this in various ways, including a boost in the economy of the city.

Students not only come to the city looking for education but also employment, and with the employment is the ability to spend more money and pump it back into the economy making it the perfect place to uptake a student investment.

The universities

The universities themselves also bring an income to the local economy as they are a large employer in the city. For example, in 2020 it was estimated that 22,000 jobs in Manchester came from universities, 150,000 in London and 18,000 in Birmingham. So not only do the students bring in value but the universities and their size offer the local economic stability and jobs for all. Manchester city centre has a seen a rise in population for a while now with a large demand from the younger population.

In addition to this, universities want their cities to be appealing, students today take into consideration what surrounds the university, the location, the local amenities, and lodging options. So many universities are putting money back into the local economy to make their cities more appealing to the potential student, for instance in 2017, the University of Liverpool contributed £650 million to the Liverpool City Region. This is beneficial to an investor that is looking at Liverpool for a PBSA Investment.

Brexit is expected to have a negative impact on cities such as London, but it is expected to fuel the current house price growth in the North. Liverpool can currently offer an average rental yield of 5.48%. Similarly, Manchester has an average rental yield of 5.16%. Sheffield’s average gross yield is up to 6.6% with up to 17.42% price growth in the past 5 years. However, Advantage can consistently offer a brand new, purpose built student accommodation (PBSA) that provides an 8% net yield.

Another factor to consider when looking at student investment is the fact that many students do not always leave the city after they’ve graduated. Many build long-lasting relations with friends and employers – this contributes to the growing demand for housing, and whilst they can’t stay in student accommodation there are opportunities for residential investments in these cities due to the rising demand.

For example, 51% of Glasgow students stay in Glasgow after graduation, higher than anywhere else in the UK, showing not only is Glasgow an opportunity for student investment but also an option for HMOs or other housing options.

PBSA Points to consider 

When looking for PBSA the important points to consider are rental yields, rental demand, student population and attractive property prices.

The largest student populated cities in the North are

1)Manchester

2)Leeds

3)Sheffield

4)Liverpool

5)Newcastle

Along with the rising housing demand, rising student population and money being driven into these cities, the north provides an ideal location for a student property investment. Not to mention the basic benefits of Student Investment, such as:

  • No Stamp Duty – below £125k
  • Higher and longer assured returns – typical guaranteed rental of 0-5 years on off-plan projects
  • Fully Managed – completely hands off and hassle free for investors

Advantage can help you make these investments in up-and-coming cities across the UK. With Cities such as Sheffield offering 8% Net yield on our latest PBSA investment

Click now to find out more about Queens Court – a luxury new build with ensuite and studio apartments available.

Advantage Investment can personally source you student investments in these cities depending on your requirements, contact us today.

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