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The Best University Areas for Property Investment

by Olufisayo
Published: Last Updated on
Property Investment

With four of the top ten universities in the world, the UK holds host to a plethora of exciting student destinations for study. As the demand for student accommodation increases, from both international students coming to study, and those moving from home to live in a different part of the country, the opportunity for investors to satiate demand with high quality, luxury accommodation is ripe.

Student property is also a great alternative to residential investment. Not only is it typically more affordable, making it an excellent option for first-time investors, but the rental yields are rising, and the demand means that the likelihood for attracting a tenant is increased. Student rent is again typically a more reliable source of income, as it is usually paid consistently as loans are paid in, or directly through a parent or guardian.

London’s university draw, host to all four of the UK’s top-ranking schools in the world, is undeniable, but Brexit uncertainty and a stagnating market have made it one of the most unfavourable places to invest in the UK looking forward. For those wondering what the most viable investment options are for student property other than the capital, here are two of the most popular university areas for property investment.

Property Investment

Liverpool

The home of the Beatles and the European Champion’s League final winners, the northern city of Liverpool has a large tourism draw already, but the university draw is something that potential investors should not overlook. With three quarters of residents living in the city centre between the ages of 17 and 29, and multiple universities and colleges embedded within walking distance of shopping centres, bars, restaurants and attractions, It is clear that education and the trajectory of employment following said education is an important factor in why Liverpool’s population has grown 181% since 2002, and continues to grow.

In addition to this, half of the 70,000 students visiting the city to study are also in need of accommodation. Property investment companies such as RW Invest are offering investors off-plan property development projects, giving them the opportunity to meet this demand with luxury, city-centre apartments that give them all the amenities they will need to make the most of their academic journey.

The University of Liverpool, the city’s leading Russell group rated university, features significant international ties, with over 10,000 students in the 2017/18 year and a partner university in China. These connections make the city a great destination for overseas students, and the investment opportunity will evidently arise as the demand for housing comes from these growing numbers. The city is also not just attracting attention from international students, but investors also. The interest from Chinese investors in Liverpool, for example, has increased by 160% since January 2018.

Manchester

City-centre living is again becoming increasingly desirable in the UK, with more and more student property projects in development as the demand increases. Cities are providing students and young professionals with the experience, culture and education they want, and the cities are benefitting from economic success and investment opportunity in return.

Regarded by many as the northern capital city, Manchester provides a vibrant melting pot of creativity and ideas, with plentiful and increasing job opportunity as it becomes a burgeoning tech-startup area. Again, the population of the city has grown immensely in recent years, and it will continue to as it rivals London with more affordable opportunity.

Manchester also has a fruitful potential for capital growth, and is among one of the best areas in the country if you want to see quick improvements on your potential property’s value. Its 12-month capital appreciation growth in 2018 was 7.4%, the highest in the UK.

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