Despite the hammering buy-to-let landlords have been taking of late a new report has stated that over a third of property investors intend to increase their student property portfolios in 2016, showing that new tax rules have far from put off investors in the residential property market.
This research, carried out by The Mistoria Group, reports that over a third of student property investors purchased HMO properties in the first quarter of 2016 in order to beat the new stamp duty rise and a further 43% of property investors plan to purchase two to three new student properties within the next 18 months.
Managing Director of The Mistoria Group, Mish Liyanage comments: “Student accommodation can offer a number of attractive features to investors. The yields are high as students settle for less space than other tenants; occupancy is typically very good; and it is neatly counter-cyclical, as more people go to university during economic downturns."
An increase in the number of students choosing a university education has provided a great opportunity for landlords to venture into the student market and provide good quality accommodation in high demand areas which successfully rents year on year with minimum, if any voids.
Landlords have been drawn to a number of high yield student properties on the market of late, offering the assurance of a resilient investment with rental incomes and property values remaining stable, or in many areas increasing.
Local Estate Agents have reported high demand for good quality student HMO properties with some really fantastic investment opportunities coming onto the market on a daily basis.