Buy-to-let or Student Accommodation – Which one is for you?

After the recent changes to the pension scheme and the stability from the general election, the property market has surged.

Firstly, buy-to-let investments can be financed through mortgages – unlike student accommodation investments – this aids investors as a large amount of cash is not required. Figures from Council for Mortgage Lenders (CML) show a 15 per cent increase in the number of buy-to-let loans in the first quarter of 2015, compared to the previous year.

It is apparent that the buy-to-let market is growing rapidly as CML figures expect the industry to pass the £1 trillion mark; the success of the buy-to-let market is also facilitated from the struggle of first time buyers today – people cannot afford to buy therefore their option is to let.

The student accommodation market is emerging, as proven by figures from UCAS which confirms a record high number of undergraduate university applications, an increase of 2 per cent. Student accommodation will always be demanded especially with plans to lift the current cap on University student numbers. Yet many Universities are struggling to supply students with residential halls, this encourages private developers to benefit from this shortage.

Student investments are a simple hands off investment for investors as the management and finding of tenants can be taken care of, investors are also more likely to benefit from higher average occupancy rates along with higher net rental yields that ensure a quicker return on their investment.

Deciding which type of investment is best for the investor requires a true understanding of what is wanted from the venture. If you are still unclear as to what form of property investment suits you, why not contact us today and speak to one of our experienced consultants to receive free investment advice.

Tel: +44 (0) 1244 343 355 Email: sales@residential-estates.co.uk