Investing in Private Halls of Residence

Growing numbers of investors are moving into a rental property as a means of boosting their returns and the best profits to be had in the sector are from student accommodation.

There are several different types of student accommodation and many people associate student digs as being run down and neglected but students will no longer live in these properties.

Today, students are more demanding and willing to pay a premium to live in a better quality of student accommodation.

Invest in purpose-built student accommodation

However, growing numbers are also opting to choose purpose-built student accommodation, or private halls of residence, since these offer more mod cons and home comforts.

This trend also means that investors also have a reliable asset that will generate a secure income which helps make it one of the best property investments to hold in a portfolio.

Indeed, demand from students, especially those from abroad studying in the UK, for new build high-quality student accommodation is high.

Coupled with this is the fact that there is not enough supply to keep up with demand in most locations which means that investors have a secure market for several years to come.

Private halls of residence – investment opportunities

Underpinning part of this growth is the legislation around houses of multiple occupancy (HMOs) which tend to be shared student houses in big university towns.

Laws now restrict the number of HMOs allowed in many residential areas and the running of them is now more strictly enforced.

The result is more students want the higher quality type of accommodation that will provide value for money which means that their rooms must be self-contained and have a study space.

Students are also looking for their private halls of residence to have high-speed broadband and good Wi-Fi connectivity as well as being close to their university so they can easily attend lectures.

Location is key for private halls of residence investment

Last of all, students are also looking for their accommodation to be close to local amenities such as shops and pubs.

Another big attraction for living in a private halls of residence for a student is that there is usually a building manager and security on site to help make them feel safe.

As with any investment in property, it’s vital that the investor undertakes as much research as possible because they will also need to look at the potential location for the investment as some areas deliver better returns than others.

Another important factor for anyone investing in a private halls of residence is to check that the level of occupancy is relatively high for most of the year to help ensure they best yields and profits will be delivered.