'Soap dodgers' no more - student property investment hots up

photo credit: qbirdnumber1

“Once upon a time, a property investor put all his money into buying a beautiful block of flats, which he rented out to young professionals for £1,000 a month and lived happily ever after.”

Not always the case these days I’m afraid, the smart money isn’t on yuppies anymore. It’s on the land of the great unwashed, the tax-dodgers, the cider-swilling, Pot Noodle munching…..okay that’s enough, I obviously mean students.

Long gone are the days when students lived up to the above stereotypes, these days University costs a lot and students are an altogether more discerning breed, which is reflected in their choice of accommodation.

‘Young Ones’ accommodation is out

Bricks & Mortarboard Student Accommodation Review by property gurus Knight Frank has revealed although the residential, commercial and industrial investment markets in the UK may not be as buoyant as we’d like at the moment, investment in student property is thriving and is more profitable than any other.

Rents on the rise

According to the site the report says the average student weekly rent has risen from £67 to £82 between 2003 and 2007 and a similar level of inflation is predicted until at least 2011. While one in ten students live in university accommodation, the others are encamped in private rentals and paying from £40 to £120 a week depending on the city.

Home Move also says Knight Frank has given a helping hand on the hotspots to choose if you’re looking to invest in student property. Edinburgh tops the list, followed by London, Newcastle, Birmingham and Manchester. The moral of this fairytale? Student property is where it’s at.

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