Scotland ‘best’ for student housing investors

The demand for student accommodation has prompted a property investment boom. Scots might be portrayed as having short arms and deep pockets but the Scottish student accommodation market is positioned to command the biggest yields for property investors – sceptics will say thanks to the diverse background of students in Scotland!

Rising demand for purpose built student housing has created an additional opportunity for investors. Now as well as the option of refurbishing traditional properties for the student market investors can invest in student specific property. These are both areas that the team at Cairn know a lot about.

Research published by Savills illustrates the growth of the student property market. It totalled £5bn between 2012 – 2014 and the demand for purpose built student living space continues.

London remains a hotspot, however, yields have been adversely affected because of rising student fees and a competitive landlord market. Completion of 30,000 student beds in the past year have taken the total to 100,000 in the city.

North of the border concerns over last year’s Scottish independence referendum have been quashed and Savills identified an opportunity for 11,000 purpose built student homes despite the uncertain market in the North East of Scotland. These are primarily across Glasgow and Edinburgh as well as 1,900 in Aberdeen.

Plans for a £67 million pound student living development on the doorstep of Glasgow University are indicative of this boom, as is the existing waiting list for Cairn student properties thanks to our consistently high standard of accommodation.

Talking to The Scotsman, Select Property Group’s chief operating officer, Trevor Moore cited a lack of high-quality, purpose-built accommodation in the city as a leading reason for the build. With accommodation in six English cities including Manchester he’s a man with more than a little background knowledge.

And who wouldn’t want to live in a home designed to fit your lifestyle? Properties are designed and decorated to suit student needs in well connected locations, close to places of study.

Alternatively existing properties can be refurbished for the student market. Refurbishing a property is an effective way to improve both environmental efficiency and yield. Thanks to our reputable knowledge of HMO licensing and our trade connections we can quickly and efficiently manage the refurbishment process – find out more here.

Housing that benefits students in turn offer investors properties that will deliver strong yields and rising rental income year on year. Investing in popular student areas offers a strong opportunity to limit void periods too.

Our property specialists can help you to find custom built accommodation, or if you decided that’s not for you we can help you to add value to a traditional property by guiding you through every stage of the HMO licensing process.

If you would like to find out more about investing in student housing in Scotland please get in touch.

If you would like to speak to a specialist at Cairn or would like to find out about off market opportunities you can get in touch with us by e-mail, through our website or in person at our Glasgow head office.

We are also happy to answer any of your questions through social media where you can follow us on Linkedin, Twitter, and Facebook.