The student market is about to get under way for the 2014 intake, so is the time right to diversify into the lucrative student market?
Latest figures show that student property returns have increased by 13.4% since 2007, offering fixed annual yield return of up to 8%. Top student investment hot spots include, Southampton, Portsmouth and Brighton. The key driving factor is independence, well-maintained studio apartments offering spacious accommodation and self-contained en-suite facilities are now at a premium.
Where is the demand coming from? The overseas student market is a key source. Overseas students from places such as France, China, India and Nigeria now make up a significant portion of the UK's student population, especially in the postgraduate sector where they account for more than 50%.
The undergraduate market has always provided stable yet lucrative ROI, but the demand for high end quality postgraduate housing has only just started to show its profitability. As a result, many investors feel confident that they will have very little trouble filling rooms and earning back money from student accommodation. This is leading more and more investors to choose student developments as an alternative to residential family lets.