Landlords 'should target university towns'
by Sarah Ashcroft
Property investors considering the benefits of a buy-to-let mortgage should consider branching out into student accommodation
for a new way of making money, one industry expert has suggested.
According to Peter Mindenhall - researcher at strategy developet IPINGlobal.com - landlords looking to engage with this sector need to purchase homes in established areas or well-known universities to gain interest.
Mr Mindenhall suggested those proprietors looking into the sectors need to find out whether or not the particular region they are interested in has a serious lack of quality accommodation - as this could promote interest among students.
He said it is not necessarily the case that landlords can take up a development in any part of the UK and enjoy profits, as students are often spoiled for choice when it comes to selecting their home.
The expert's comments were made after the Landlord Syndicate reported grotty student properties could be on their way out, as property owners are paying attention to increased demand for high-quality furnished homes.
Research also revealed the student rental market is becoming increasingly competitive, which means landlords heading into the next academic year need to ensure they do the best they can to make the house or flat stand out.
The study also found over the last year, one member of the Landlord Syndicate - Student-Furniture.co.uk - experienced over a 100 per cent rise in demand for their fittings packs - which is said to be partly due to increasing expectations.
In addition, Mr Mindenhall revealed the number of foreign students attending British universities has increased by 68 per cent over the last decade.
"Foreign students tend to have more financial support behind them due to the fact they are studying abroad and want to be sure they are in a modern, safe, well-managed environment that is close to their place of study," he explained.
Published on: August 14, 2012
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