Buying for student children or investing in student accommodation

It can be an attractive solution for many that they can solve their student children’s housing needs through investing in student accommodation wisely. 

If you are simply buying a property because your children need somewhere to live for the duration of their course, we would strongly guard against an investment of this sort. Consider your exit strategy – what will happen to the property at the end of your child’s studies? Will it be suitable for an assured shorthold tenancy? The time frames involved are unlikely to allow you to see a profit if you don’t wish to continue to run the property as an investment for some years to come. If, however, you have identified the benefits of a student property investment, then combining it with providing your child with a home for the duration of their university stay makes sense. Remember that once your child has left the property, it’s care and administration is likely to become more burdensome.

Size and location are the first major considerations. Accessibility by public transport, and safety of the area are crucial. Remember that during the holidays the property will probably be empty so security is also an important factor.

  • How many students do you want to accommodate? Budget obviously plays a major part, but also consider HMO* regulations and the implications of buying a property that falls into this category.
  • While students expect increasingly high standards of accommodation, and will certainly expect (and need) broadband and wireless connections, most student properties get a good kicking, so properties need to be robust, and factor in expenses for frequent work.
  • While students can pay differing amounts depending on room size, it helps to find a property with reasonably equal bedroom sizes and open plan living accommodation.
  • The university itself, and student bodies, can generally help in terms of finding student tenants, and matching students to accommodation. This is a good starting place for research.

Once your child has finished living there, use the opportunity to review your strategy:

  • Are under-grad students your ideal market? PHD or MBA students might be more responsible tenants ?
  • Often visiting professors or research fellows are more all-year-round tenants, and can be keen to bring their families with them, which can be challenging in the accommodation usually provided by the university – can your offering be made suitable for that type of tenant?

If you are considering investing in student accommodation as an investment strategy, you will need to research where the demand is the highest and expected to continue. Monitor the universities that are still building despite Brexit, but consider carefully your market segment. Clean, well-maintained more communal older properties will still have an appeal to a certain demographic.

*Houses with Multiple Occupancy

Stacks’ Regional Directors have in-depth knowledge of the investment and student market in their regions. Get in touch here.

For more advice on investing in student accommodation, you may find this article on Your Money useful.

You may also be interested in

view more

Are Bungalows a Good Investment?

There has recently been a high demand for single-storey properties in the property market. This, along with the declining supply of them, means that in many areas, bungalows now reach a higher asking price than in previous years – but are bungalows a good investment?   At Stacks, we specialise in all...

Property Buying Agents Explained 

At Stacks, we are property buying agents – we know all there is to know in the world of property, sellers, vendors, solicitors, and not to mention various areas of the UK. We know which properties are currently on the market (even if they’re not on the internet already). We work...

Things to Know Before Buying a House

There are many things to know before buying a house, that’s undisputable. Many of the legal things are discussed often and most people know what to expect. Then there are other things to know before buying a house which may not be discussed very often. This is because each house purchase...

The Ultimate Checklist for Buying a House

Having a checklist for buying a house can help you with your purchase. When it comes to buying a house, there are a lot of different aspects and processes which should be kept track of. At Stacks, we are property finding and buying experts. We have created the ultimate checklist for buying...

Start your property search today

Call us on +44 (0) 1594 842880 or complete the form below

    Your Details



    Your property requirements:

    Status:
    SoldThinking of movingOn the marketExchangingIn rented accommodationCash buyerIn need of helpOther


    We will never share your details with a third party. For more information about how we handle your data, please see our Privacy Policy

    How we can help you
    View our services

    When making probably the most important financial decision of your life, it pays to have the right advisors at your side.

    “You showed fantastic attention to detail, anticipated all eventualities, and provided timely and practical help and guidance every step of the way.  Above all, you supported me in making my own considered decisions, and I am so grateful to you for all your help in getting me to where I am now!”

    “We firmly believe that without Rachel and her skilled negotiation we would not have secured the property.”

    “We felt they genuinely wanted to help.”

    “Stacks’ performance on this assignment has been absolutely outstanding and more than met my expectations. Her understanding of the brief and the ‘after-find’ service set a standard of professionalism that I have not met before.”

    “It is not often that one is pleased to part with money but I can truthfully say that I am on this occasion. You have earned every penny of this cheque and what is more, you have done it with great courtesy and good humour. It has been very pleasant working with you. You really did take most of the stress out of our house hunting.”

    “Encouraging me to think creatively about what could work for me.”

    “Finding a plot not yet on the market and persuading the developer to enter into an exclusive contract with me to build to my specification.

    “I was impressed by the efficient, kind and courteous service provided by Stacks”

    “Stacks were a tremendous help and we would never have found our home without them. She is a lovely person with a great sense of humour which was essential during some of our tricky negotiations

    “You gave a much-valued ‘younger’ perspective on our situation, which was a real asset”

    “We found the service extremely helpful and professional at all times”

    “I have been delighted with the service I have received from Stacks and will not hesitate to recommend Stacks in the future.”

     
    Subscribe to our newsletter

    Receive updates about the world of property, straight to your inbox.

    * indicates required