Best places for student property investment 2023
Listen up, landlords, student housing demand is on the rise. New research reveals almost £14 billion is being invested in student accommodation worldwide. After experiencing a natural lull during the pandemic, we're excited to say student property investment is back to where it was.
However, for the UK it’s predicted that there will be a shortfall of around 450,000 students beds rooms in the UK. So the time for landlords to invest in student properties is now, but the question on everyone's lips is where?
This blog delves into the best six student accommodation investment areas. We share key statistics from the student population to avg monthly income so you can decide where to invest in your student property.
Where are the best places for student property investment?
At Hybr, we work with hundreds of landlords to list their properties for free and find vetted, supported, and great tenants for properties in a matter of days. We list properties across the UK, but we’ve found that Bristol, Lancaster, Liverpool, Lincoln, London and Sheffield are some of the best areas to invest in student properties.
Across the UK, there are natural hotspots for student investment properties. So when finding the best places for your student property investment, there are a few key things to look out for.
Using the table below, compare the six cities we feel make excellent student property investment areas and look at the key factors such as the population of students or the average monthly rental income.
Why invest in student property in Bristol?
The population of Bristol has continued to grow over the last twenty years. It is home to two buzzing universities, with the University of Bristol ranking within the top 10 universities in the UK. The Sunday Times has recently included Bristol among one of the Best Places to Live in the UK for 2023, so it’s no wonder why students find it such a desirable place.
As a significant university city and student population estimated at 64,200+, Bristol has long provided a healthy stream of student tenants. But recently, that demand is at an all-time high.
It’s estimated that by 2028, Bristol will need an extra 6,800 student beds. And a recent article from the popular Bristol student publisher, The Tab, has declared a student housing crisis as it reveals a 25% shortage of beds for students in the city.
Bristol is an ideal location if you’re considering investing in student property; alongside the rising property demand, prices for rental student property average at a premium of £1,723 a month. Explore our Bristol city guide to find out more.
Why invest in student property in Lancaster?
Lancaster University has one of the best university reputations. It's ranked no1 in the North and 8th in England for student satisfaction and is the UK's 6th-best medical school and the 12th-best university overall. So, while the student population is slightly below other cities, its student reputation means it'll maintain a steady demand.
One of the reasons investing in student property in Lancaster is so appealing is the affordable property prices. The average property price in Lancaster is £232,090, significantly lower than its neighbouring university cities.
If you're interested in learning more about student investment property in Lancaster, check out our city guide.
Why invest in student property in Lincoln?
Lincoln is a fantastic location to invest in student property primarily due to its affordability compared to larger cities. And the average house price for Lincoln (£260,290) is significantly lower than the English national average (£310,000). With the surrounding beautiful countryside, sometimes Lincoln isn't assumed to be a studenty area, but it's not one to miss when thinking about the best student investment hotspots.
With a student population of 18,700+, the demand for student property is high, and the average monthly rent you can earn is a generous £1,142.
Read our city guide to see your options when investing in student property in Lincoln.
Why invest in student property in Liverpool?
Liverpool is ranked as the 2nd best student city in the UK and is home to an impressive five universities; this alone undoubtedly puts Liverpool on the list of best places to invest in student property for 2023.
Alongside its vast 70,000+ student population, Liverpool is a popular student investment destination because house prices are commonly below the national average. Although the housing market across Liverpool can differ significantly, so you'll want to be mindful of where you pick your student property investment in Liverpool.
Recently it has also been announced that students of Manchester are being offered housing in Liverpool due to the city's housing shortage. So alongside the demand for Liverpool students, there is an expected influx of Manchester students searching for properties in Liverpool.
You can learn more about the student rental scene in Liverpool in our city guide.
Why invest in student property in London?
If you’re looking to invest somewhere in the big smoke, student accommodation can be the best way.
We all know everything in London comes with a hefty price tag. With house prices averaging at £1,121,641, investing in student property in London requires a significant upfront investment, but the potential earnings are limitless.
London is home to the largest student population in Europe, estimated at over 400,000+ students. And of course, London is the most expensive city to rent, currently averaging at a jaw-dropping £4,548 pcm.
If you are thinking about student property investment in London, look at our city guide to find what students are interested in.
Why invest in student property in Sheffield?
Sheffield is home to two popular universities, with an impressive student population of 60,000+. An affordable average house price of £252,926 makes it a very appealing student property investment destination.
In 2023 rent prices in Sheffield increased by 12.5%, primarily down to the increasing student population. Figures from Zoopla show the increase is “due to a supply/demand imbalance” held up by “large student populations”.
Something is telling us that Sheffield is one to watch. Read more about the Sheffield student rental market in our city guide.
Now, time to find students who love your properties
Once you’ve landed on the best location for your student property investment, the next step is to find tenants to fill the rooms. Any landlord will tell you this is the really important bit. You want to find tenants fast, but for a hassle-free life, you also want to find tenants who love your properties, and that’s where we come in.
Find out how Hybr fills rooms fast, gives direct access to reliable students and helps you manage the relationship throughout the year (at no extra cost).
Sources:
Avg. Property Value: Home.co.uk
Avg. Rent PCM: Home.co.uk
Student population:
