The post-graduate UK student population has increased by 13.4% between 2007 and 2012, while 45% are now international (non-EU) and 12% are from the EU. The result of this rapid growth is even more demand on a seriously under supplied bespoke post-grad accommodation marketplace.
Investors looking to diversify or increase their buy to let portfolios are being attracted by net yields of up to 8% for post-graduate accommodation in some of the strongest post-grad universities Including De Montfort university in Leicester and Glasgow university.
China, India and Nigeria top the list of international post-grad students with Germany, Republic of Ireland and France supplying students in the greatest numbers within the EU. The most common subjects studied are Business Studies (36%), Engineering (32%) and Social Studies (17%).
Stuart Law, CEO of Assetz, comments:
"Undergraduate student hall of residence accommodation has long been a sound buy-to-let investment opportunity, offering excellent yields, but the lucrative market in high quality post-graduate accommodation is only just starting to materialise. Many students are continuing to study after their undergraduate degree due to the current competition in the UK jobs market and overseas students are drawn to the UK for its excellent standard of university education.
“Our experience is that post-grads have a clear preference for their own space – self-contained hotel-style studio apartments which facilitate independent living in a well-managed building that permits peaceful study. Many extra facilities are available for overseas students such as, for example, rice cookers. Net yields of up to 8% and low entry prices from £65,000 for a self-contained studio apartment are a fantastic income producing investment for investors' long term income needs.”
