International students fuel uni halls investments
An increase in international students attending UK universities could drive returns for investors putting money into halls of residence, Assetz has claimed.
Stuart Law, chief executive of the buy to let specialist, said the dip in applications from UK students due to higher costs, added to the increase in international applications, provides UK investors with the chance of a low risk investment and a high return.
He claimed international students are likely to remain in dedicated halls of residence for the duration of their degree as they are less price-conscious, meaning an investor’s halls can be expected to have tenants for at least three years.
According to Assetz, people who have invested in student halls are receiving double the average yields of the broader buy to let market, benefiting from gross yields of eight to ten per cent, and potentially proving that halls of residence at UK universities are a hands-off investment.
Mr Law said: “The student property sector has proved to be one of the most resilient investment sectors during the downturn, with rental incomes and property values remaining stable or increasing.”