Student accommodation is outperforming the general buy to let sector. During 2013, monthly rents saw an increase of 2% which actually led to a drop in yields. This was not the case in the student sector which sees yields of 7-10% net.
The story was commented on by the Director of Go Global Investments, Peter McDermott, saying “These latest figures from Countrywide Residential Lettings show that despite 'Generation Rent', where the number of people renting from a landlord has doubled to 8.5 million in 15 years, gross rental yields are sticking around the 6% mark.
"Once you factor in void periods, tax implications, maintenance costs and chasing unpaid rent, the financial appeal of being a buy-to-let landlord loses some of its gloss. This is why serious serial UK property investors are coming to us to discuss student housing where, for example at our Leeds project, they're assured a minimum 8.1% net for five years.”
William Taylor, of Martin & Co Huddersfield added “The University Of Huddersfield is going from strength to strength and was voted best university this year. Their investment in new facilities is never ending and this has obviously had a positive effect on numbers of students. As such we are seeing an increase in landlords taking on the student market. The days of trashed houses and damp rooms are long gone, we have high quality accommodation that is highly sought after. Our tenants are respectful and conduct themselves professionally.”
Any investors looking into the Huddersfield student market can contact Martin & Co directly for more information.