Stick to modern buy-to-let buildings for students, landlords told
Buy to let investors looking to purchase properties that will appeal to students ahead of the new academic year in September have been urged to focus their search on more modern buildings.
According to investment strategy group IPINGlobal, increased rules and regulations placed on landlords and letting agents mean that certain traditional student developments are becoming harder to let without undertaking significant amounts of work first.
Peter Mindenhall, a researcher at the company, explained that with these newer rules on housing standards for tenants, more traditional types of student accommodation are "falling by the wayside".
With so many older forms of rental property and on campus halls requiring significant upgrades, he explained it is much better to stick to more modern buildings.
The expert was speaking after research from Knight Knox International indicated that most universities expect overwhelming demand for places for the next academic year, rather than the decline in student numbers brought on by increased tuition fees that some have predicted.
Such a scenario has raised the spectre that universities will not be able to cater to next year's freshers with their existing facilities - which creates something of an opportunity for landlords to exploit, as long as they know what they are looking for.
"New-build developments with planning approval and support from the university and local council are the primary things to consider," Mr Mindenall added. "Some developers will also include management services or companies which will appeal to more active investors."
Highlighting the extent of the opportunity in front of investors, the Knight Knox International's research suggests that average rental yields of six to 6.5 per cent can be enjoyed by landlords with student properties in their portfolios.
This is enough of a draw to attract international as well as domestic buyers, who are building larger developments offering affordable accommodation targeted at highly consumerised students.
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