Most people associate buy-to-let investment with the purchase of one or two-bedroom flats and trying to make single figure returns on the residential rental market.
However savvy investors now associate UK property investment with the rapidly emerging student accommodation sector which is providing extremely healthy returns.
Recent research carried out by buy-to-let mortgage specialist Paragon Mortgages shows that students generated the highest yields for landlords in 2011.
If you are an investor pondering where you should be investing, you will be pleased to know that FJP Investment sees student accommodation as a hot segment of the property market. You will do very well by investing in the right locations close to colleges and universities.
Student Accommodation Investment
Commenting, Nigel Terrington, Paragon Group chief executive, says: “Yields are an important component of a landlord’s overall business plan Student yields typically outperform the wider market because they are let on a per room basis, which can generate higher rental income.”
The fact that UK student accommodation has thrived over the past two years, rapidly outpacing the
UK’s conventional property market has not gone unnoticed. In fact its fast growth and investment strength has been so prolific that in January 2012, The Times ranked student accommodation as the top asset class in the UK’s property market.
Knight Frank’s 2012 student property report added to the accolades, stating: “It has outperformed every other commercial property class and delivered consistent returns throughout the economic downturn.”
“FJP Investment Ltd is pleased to confirm the sale of Student Accommodation to our investor base. We as a collective our very excited to extend our years of knowledge and expertise in providing a fantastic student accommodation investment to our investors” said Tom Roberts of FJP Investment Ltd.
investors seeking an overseas property investment should make contact with FJP Investments today.
The popularity of student accommodation amongst investors is ultimately driven by consistent occupancy rates of 99% or higher and a structural under-supply.
“£246m has already been invested into the student housing sector during the first quarter of this year” added Roberts.