Currently, investors are torn on whether or not to invest in the UK property market. Some say its a great time with many opportunities available and others advice caution. Those who are on the fence may want to consider a student accommodation investment. This particular area is in desperate need of more investment properties.
Students Are Slumming It
If you were once a university student, you might relate to slumming it during those years. Money can get tight fast. Quite often a student’s diet will consist of baked beans on toast, pot noodles, and other budget food items. A recent survey shows students are also slumming it in terms of accommodation. Many say their living areas are rough and poorly maintained. Not only that but the student property available falls below their expectations. Roughly 25% of the UK’s student population live in privately rented accommodation for which they get below standard accommodation along with a pretty lousy deal.
Limited Choices in Student Housing
When students participated in the survey, they expressed how there simply weren’t suitable properties available to them. With limited options, students lease undesirable rental properties. Upon commencing their tenancy, most students reported a number of issues with the property, but due to the limited availability for them, they had no choice but to stay.
Mould, Damp and a General Lack of Upkeep are the Norm
You’ve likely heard reasons landlords give for their aversion to student tenants. While they offer some valid points, there is a flip side to this coin. Approximately 37% of students in privately rented accommodation received incorrect documentation for their lease. Again, many students ended up dealing with unresponsive landlords seemingly unfamiliar with or indifferent to their ownership responsibilities. Around 42% of students stated that they had insulation issues and damp problems in their rented properties. A further 16% said they had faulty electrics. These types of maintenance shortfalls frustrate students who have limited options and cannot be choosy.
Student Accommodation Investment Opportunities
As we look towards the future, cities across the UK have student accommodation developments in the pipeline. The country’s student population is in dire need of quality living spaces. Those who choose student accommodation investment opportunities have a good tenant outlook. Upcoming student accommodation developments are designed to suit the student lifestyle. With small kitchen spaces, desks, and storage, comfort and convenience are at the fore. What’s more, many of these developments are secure and have communal areas for socialising.
Those who are new to the idea of investing in the student market may feel a bit sceptical. Historical investment data shows that student accommodation investment is a great opportunity. Despite the current and future states of the property market the student accommodation sector continues to thrive with a corresponding increase accommodation demands.