The data showed that increasing numbers of international students attending universities in the North West, such as Salford, Manchester and Liverpool is driving demand for high quality, shared accommodation. Furthermore, the excellent yields and affordable property in the North West is attracting more and more investors, who have been priced out from London and the South East.
Recent research from Property Partner, which compiled a list of 86 university towns and cities across the UK, ranking each local property market by net rental yield, found that all three of Greater Manchester’s higher education establishments – the University of Salford, the University of Manchester and Manchester Metropolitan – made it into the top ten.
Healthy cash rental yields of 4.4% or 4.3% can be expected in parts of the city, while in Salford and Liverpool cash rental yields in excess of 8% can be achieved. Salford and Liverpool have both undergone significant regeneration in recent years, with more infrastructure, transport and business projects on the way, which means the potential for capital growth is once again strong.
According to The Mistoria Group, property investors looking to invest in student property should look to university towns in the North West to find the best returns.
Mish Lyanage, Managing Director of The Mistoria Group, comments: “We have achieved almost full occupancy for all the HMO properties we manage on behalf of Landlords for the 3rd consecutive year, achieving 100% in Salford and 98% in Liverpool. We are inundated with enquiries still and have a long waiting list for students wanting high spec, shared accommodation. A large contributory factor for our success has been our staff, two offices in both Salford and Liverpool being situated a walking distance from the campus, website which is very user friendly and functional for students in terms of applications, payments, maintenance queries etc
We have also experienced a surge in investors wanting to buy our HMO properties in North West university cities. A combination of excellent yields and full occupancy is attracting investors. Post Brexit, we have also seen a 35% rise in international investors, particularly from India and China who are taking advantage of the weak pound. Our Manchester corporate office was set up recently to deal with our international investor and provide a one stop solution for all their investment needs”
Student property has proved itself as the best performing asset class, compared with other products in property sector. With an ever increasing student population and post graduates wanting quality rental accommodation, often in their university city, demand is going to continue to rise. Student property in the North West can provide investors with unrivalled yields.
In Liverpool, for example the average price for a four bedroomed HMO is £150,000 and cash yields are up to 13% - 8% rental yield and 5% capital appreciation. If investors want to target the student or young professionals market in Liverpool, they should buy a multiple-bedroom property within 30 minutes’ walk to the university or City Centre. Students and young professionals are looking for high spec accommodation with good appliances and a quality finish, that have good transport links nearby, such as train stations and main roads.”
