Rental growth in that particular area of the market is still robust, with positive cash returns still very achievable.
Unlike much of the buy-to-let property market over recent years, student rental levels have been growing consistently, fuelled by an increasing student population, which has led to demand for suitable living accommodation outstripping supply.
Savills has seen student rents increase by 31 per cent in the last two years alone, far outstripping current rental growth in much of the market.
Limited finance means that universities have very little capacity to directly increase the supply of accommodation. This has provided an excellent opportunity for developers of private student accommodation and investors alike, to become major players in the development and financing of such accommodation.
Asstez' chief executive, Stuart Law, advised: “In today’s climate it is essential that the serious investor is continually adapting their portfolio to secure the best possible returns for their cash invested.
"Student property has such high income that you can often repay a mortgage within 20 years, making it one of the most lucrative investment opportunities in the current market.
Assetz is offering a series of student properties, both new build student flats and refurbished houses, in key university towns across the UK. All of its current properties are fully managed by an external management agency, removing the responsibility for letting, management, services and any necessary refurbishments, providing a virtually hands free, yet highly profitable buy-to-let investment opportunity.
Law added: “The student property sourced by Assetz is typically achieving between 6 per cent and 7.5 per cent gross yields on purchase price, with many investments proving to be cash positive in the first year, once all management costs and mortgage costs have been deducted.”
