Research by Move with Us, the residential property experts, has shown that landlords looking to purchase property to rent to students in the next academic year need to have an offer accepted on a property by 1 November this year in order to complete in time to benefit from the student rental rush in January* 2014.
Move with Us surveyed over 40 university accommodation officers in the UK, and found that over half of second and third year students start looking for property to rent in January and February for the following academic year, not September as is often presumed. The majority of first year students choose to go straight into halls of residency, but will typically start to look for accommodation for their second year when they return from their Christmas break.
The average time taken from having an offer accepted on a property to completion is approximately two months in the current market. Therefore, landlords looking to take advantage of the next intake of students need to have their offer accepted on a property by 1 November 2013 in order to have a chance to get the keys to their investment by 1 January 2014.
Robin King, Director at Move with Us, says: “Landlords looking to benefit from the rental yields offered by student lets should note the highest yielding post codes and remain open-minded about where to purchase property, not just focussing on their immediate area.”
“Lower capital investment costs and higher rental prices will deliver good yields and fewer voids, maximising potential returns. Popular student areas such as Birmingham and Liverpool are offering yields of up to 10.6%. While gross rental yields can be attractive, it is important for investors to appreciate that changing capital values can radically alter the real investment potential.”
“Landlords should follow the usual rules of purchasing property close to shops, amenities and transport to maximise rental yields. A good power shower and fast internet connection are also becoming increasingly important, especially to student tenants.”
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