23 Nov

Student buy-to-let an "attractive" investment

Student buy-to-let an "attractive" investment

The buy-to-let sector for student properties is an increasingly attractive investment prospect, an expert has claimed.

Nick Harvey-Jones, a partner at Ingman Jones, commented that income stability in the student housing market made it a safe, as well as lucrative, bet for investors.

"As far as income goes, it is still growing and it is very stable compared to the commercial real estate world," he said.

Mr Harvey-Jones explained that the primary reason for buying a property to rent out was to generate an income. With student houses, this is easily achievable as the tenants pay a deposit and do not expect a rent-free period or other incentive like many commercial tenants.

The UNITE Group published an interim management statement on November 19th that demonstrated that sentiment towards student property was improving among institutional investors.

Like-for-like rental growth reached 9.7 per cent in the four and a half months from July 1st 2009.

Mr Harvey-Jones also pointed out that financial institutions are prepared to offer buy-to-let mortgages for student homes in addition to providing loans to support development in the sector.

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