A new report from the high-yielding property investment firm The Mistoria Group has revealed a shortage of student beds in halls of residence in Liverpool. As a result, the city is seeing a surge in demand for quality shared student accommodation, with interest up by 35% in the last year.
Student Property Demand
Demand for shared student accommodation in Liverpool is rising due to the sheer number of students attending the three universities located there. Last year, there were 60,000 students studying in the city, up 20% on the previous academic year. It is widely expected that this figure will increase again this year.
It is believed that around 60% of these students will require accommodation.
Some universities simply cannot cater for the demand from first-year students, who typically reside in halls of residence. This in turn creates more appetite for privately owned accommodation.
Mish Liyanage, Managing Director of The Mistoria Group, observed: ‘There is a very real shortage of quality student accommodation in Liverpool and demand is consistently outstripping supply. The number of student rooms has swelled over the last five years, but their still remains a shortfall.’
‘We have seen a surge in students looking for high quality, HMO accommodation with close proximity to the universities and occupancy across our student accommodation is at 98%. “Shared student accommodation in Liverpool gives investors excellent yields. There are many areas of Liverpool that are ideal for student property investment such as Kensington, Wavertree, Toxteth, Kensington Fields.’
Continuing, Mr Liyanage said: ‘Student property is the fastest growing sector of the market, giving investors strong returns that are well ahead of standard BTL. The growing numbers of student tenants in Liverpool is driving demand for quality accommodation in the city and this is likely to be a long-term trend.’
‘Liverpool is the UK’s top buy-to-let hotspot, delivering investors average rental yields of 8%, once mortgage costs are taken into account. As housing and mortgage costs have the biggest influence on yield, Liverpool takes the top spot, as it has a combination of low average house prices and strong rents.’