Where to Invest? – Key Areas for Buy to Let Student Investmentadmin
Around two decades ago, school and college graduates would wrap up their courses and proceed head-first into full-time employment. Nowadays, it’s a very different picture. Data shows that between 1992 and 2016, the number of students in a full-time university education in the UK has almost doubled. With just 984,000 people studying in 90s, the student population reached 1.87 million in 2016 and has since risen further to a peak of approximately 2.3 million students.
The perfect recipe of affordable living, culture, history, location and regeneration has tempted 100,000 of these modern-day students to get a taste for the Manchester student experience, but where are the best areas to put your money when it comes to student property? Let’s take a look at some investment hotspots:
This lively suburb is an ideal place for second and third year students to find shared house accommodation with friends they have encountered in their first year of study. This provides investors with the chance to collect multiple rents under one roof, making more money out of a single building investment. The UAE is expected to invest in a major redevelopment in the area that will create a 3000-room student village worth £175 million. This kind of apartment block building is rare in an area popular with shared house living, and will therefore get the ball rolling in terms of encouraging more students to find residence in the Fallowfield zone .
Oxford Road (M1)
Also known as the ‘student quarter’, Oxford Road is a 2-mile street that comes alive at night with the beats from bars, nightclubs and exclusive music venues. A haven for newcomers looking for the characteristic ‘uni’ experience, students that locate here are in a prime location in the city centre just a short walk away from the shops and a 5-platform train station with links around the city and further afield. A central position within a city does mean that investors could pay more for property, although high rents provide worthwhile yields over a period of time.
Also nicknamed ‘The Curry Mile’ due to its impressive selection of curry houses, Rusholme is considered the best buy to let area in Manchester according to Simply Business. Popular with foreign students from countries such as Pakistan, overseas investors can find suitable apartments for their children about to embark on years of study in a foreign city and be assured that they are entering into an established community of fellow international students.
Salford is home to a university and the buzzing MediaCityUK hive of digital businesses and TV studios. Students studying on courses in the media industry can do nearby placements in the workplace of broadcasting giants such as a BBC and ITV, and aren’t too far from the city centre either. MediaCityUK is set to double in size by 2030, and as trends suggest, progression invites the brightest of brains that are drawn to areas packed with renovation and new developments.
A Profitable Investment
All in all, Manchester areas provide excellent rental returns for investors, with Salford seeing yields of 6.68% and central Manchester regions receiving slightly higher at 6.73%. With inexpensive unit and house prices currently available, property prices are set to grow by 2.8% in future years, alerting all investors that are considering purchasing student property in Manchester to invest as soon as possible.