Student accommodation 'is attractive to Manchester landlords'
by Sarah Ashcroft
Recent investment into student accommodation
in Manchester and Salford has attracted landlords in the region to the sector, one industry expert has claimed.
According to Charlie Cunningham, chief executive of property investment and development firm FreshStart, this type of residence is becoming increasingly popular among proprietors who are looking to drive yields upwards.
Mr Cunningham stated that £2 billion has been injected into this sector of rented property during the first three quarters of 2012, while more than 50 per cent of total investment this year has been in areas other than the capital.
He noted that industry players are engaging with markets in Salford and Manchester because of the popularity of universities in the cities, as well as the undersupply of student accommodation.
The expert explained that those parts of the country with higher demand for this type of property are more likely to result in higher returns for landlords.
His comments were made after the University of Chester announced plans to construct brand new on-campus accommodation for students.
The learning institute, working alongside Santander Corporate Banking, is set to provide high quality, self-contained apartments for 202 students as part of the plans, which will include bedrooms, study space and en-suite bathrooms.
As one of the oldest universities in the country, Chester became the first facility in the country to be purpose-built for the professional training of teachers.
Mr Cunningham also noted the increasing popularity of renovated mill conversions for individuals living away from home, as they are often a cheaper alternative than new-build constructions.
"Apartments located close to the city centres, if they are purchased at a price below the market value, allow landlords to charge cheaper rents than their competitors, whilst still generating high yields," he explained.
"This makes it easier for agents to find tenants and minimises void periods because all tenants are on the lookout for lower rents."
Published on: November 12, 2012
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