Multi Let Investments – Student Accommodation Boom
Many of our properties are in areas that need significant student accommodation. This is for a number of reasons, including the following:
• University fees have risen three-fold in three years. Salford University, for example, have increased their total tuition fees by more than £90 million per year.
• Universities are expanding their campus facilities, lecture rooms and laboratories to accommodate the vast increase in student population.
• Students move into private accommodation second year onwards.
• Accommodation fees start at around £120 per week per room inclusive, in first year halls.
• Investment companies charge in excess of £50,000 for a student pod in commercial accommodation units. This is generally a lease with a buy back clause making it un-mortgageable, and therefore involves cash purchases only.
• In North West areas, HMO Property Designs can source, design, project manage and fully tenant student rooms within the university village area for less than £30,000 per unit. These are units with three to five bedrooms, a communal living area and shared kitchen. Built to extremely high standards, the units include WiFi, fire doors, smoke alarms, furniture and all necessary guarantees and licenses.
• These student rooms are built in large, refurbished terraced houses and offer absolute title to the owner.
• The yield for these pods is in excess of 20% per annum.
• The growth in these areas can be relatively dramatic year on year, initially because of the change of use from private residential to commercial student lets.
• The demand in these areas is exceptionally high. See spareroom.com, Rightmove, and local lettings agents for more information on this.
• On completion or at any time thereafter clients can, through our land registry service, create and sell short term leases on one or more of the pods to capitalise on the investment.
Over the last 3 years university income has increased by 70%.
Universities are expanding facilities to accommodate new students.
These are built-in large, terraced houses and offer absolute title to the owner.
The growth in these areas can be year on year fairly dramatic.
All students move into private accommodation second year onwards.
The accommodation fees are around £120 per week per room inc.
The yield for these pods is in ecxess of 20% per annum.
Largest independent student accommodation conversion company in the North West.
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