There has been a surge in demand for high quality shared private student accommodation after a reported shortage of student beds in university halls of residence and student pods (PBSA) in Liverpool.
The Mistoria Group, specialists in high yielding investment property in the North West, found that demand was on the rise after a growth in the number of students attending university in Liverpool. 60,000 students came to the city for university last year, a figure up 20 per cent year on year. This is then expected to rise again. It is estimated that 60 per cent of these students will require accommodation.
This phenomenon is not limited to Liverpool. It is reported that many universities do not have sufficient accommodation to house all first year students who usually live in the university’s halls of residence. creating demand for privately owned accommodation. According to Student Accommodation Tracker, just 28 per cent of student accommodation currently meets rising expectations.
This could open up an incentive for investors to consider branching out into private student accommodation in Liverpool. The city was also labelled the UK’s top buy to let hotspot, offering yields of a sizeable 8 per cent once mortgage costs are taken into account.
Managing Director of The Mistoria Group, Mish Liyanage, explained: ‘There is a very real shortage of quality student accommodation in Liverpool and demand is consistently outstripping supply. The number of student rooms has swelled over the last five years, but their still remains a shortfall. We have seen a surge in students looking for high quality, HMO accommodation with close proximity to the universities and occupancy across our student accommodation is at 98 per cent. Shared student accommodation in Liverpool gives investors excellent yields. There are many areas of Liverpool that are ideal for student property investment such as Kensington, Wavertree, Toxteth, Kensington Fields.’
He continued: ‘Student property is the fastest growing sector of the market, giving investors strong returns that are well ahead of standard BTL. The growing numbers of student tenants in Liverpool is driving demand for quality accommodation in the city and this is likely to be a long term trend.’
This story was featured in Residential Landlords on 15th September 2017