The property market in the UK has been experiencing an upward spike in recent years and Peterborough has not been left behind in this boom. More investors are gravitating away from traditional property ventures and moving towards purpose built housing. Situated just 75 miles from London, Peterborough is an ideal location for this type of housing because students tend to look for places not too far from the capital.
Peterborough currently has a growing student population which is likely to increase the demand for more affordable student housing. The situation at the moment is an ever increasing demand which the limited supply cannot satisfy and this is why investors who get in on the boom now are likely to make a killing.
Student Accommodation Needs
As opposed to regular tenants, students usually have very unique requirements when it comes to housing. Their requirements are less about class and comfort and more about convenience and usability. As a potential investor in student housing, you should look to buy housing units that cater for these two needs.
Matters of security also play in a huge role in the decision making process when students are looking for places to live. Pick a low crime area and ensure that there are security measures in your building such as cameras, alarms and smoke detectors.
Statistics on Student Housing
According to market experts, the student housing boom in the UK is set to continue for seven more years. This is of course if the current market conditions prevail. Currently, landlords renting to students are earning 10 percent more than their counterparts in regular housing.
Also, contrary to popular assumptions, student housing has the lowest number of tenants who default on rental payments. One would expect students not to pay their rent on time but this is not the case. Landlords have found ways of working around this including getting parents and guardians to sign on as guarantors. This way, the parents are forced to pay whenever the actual tenant defaults.
One of the issues that scare away potential investors in student housing is the matter of voids when tenants have to go away on holidays. According to the National Landlords Association, very few property owners are actually affected by voids and the returns during school are more than enough to cover the short periods when the houses are left vacant.
Largely a cathedral city, Peterborough is a place that is rich with history and culture. Tourists, professionals and students are drawn to this town for a number of reasons. Some of these include the following:
1. The city has a steady an growing economy
2. The nightlife is vibrant
3. It is not too far from the capital
4. The city is home to great schools
5. High rates of employment
6. Great public utilities
Some of the schools in Peterborough include the following:
1. Anglia Ruskin University
2. University Centre Peterborough
3. Peterborough Regional College
4. City College Peterborough
5. Peterborough West
6. Arthur Mellows Village College
7. New College Stamford
There have also been several proposals by other institutions to set up shop in the city. This is going to greatly increase the number of students looking for accommodation in and around the city of Peterborough.
Why Student Housing In Peterborough
Before getting into any investment opportunity it is prudent to weigh your options. This often includes considering why that particular venture would be lucrative. Here are a couple of reasons why student housing is an ideal venture for any investor in Peterborough.
1. Set up cost is very low
Student housing units are usually very simple and basic. They are designed to be convenient as opposed to classy or even stylish. This means that right from the design phase they cost very little even to the building cost. While they are cheap to build/buy, student housing units yield very high returns for property owners making them a great investment opportunity.
2. Positive financial forecasts
Experts in the property market have a lot of positive things to say about the student housing sector. For the next coming decade or so, investors in the sector are likely to keep getting very high yields from student housing.
3. Growing student population
Unemployment in the UK has hit the roof and it is because of this that people are increasingly enrolling in universities and colleges. In the hope to improve their qualifications and become more appealing to employers, students are flocking institutions in Peterborough. This is a market for investors in student housing.
4. Favourable market dynamics
Initially, most investors preferred to set up student housing units within the capital and immediate surrounding areas. Well this is changing now. As the capital gets overwhelmed and crowded by businesses, more investors are exploring options outside London. Peterborough is one of the cities being eyed by many investors or these projects. There is a lot of land available in Peterborough and obtaining council permissions is not difficult making things even easier for investors.
Important Tips for Landlords
As a potential landlord you will need to know the dos and the don’ts of the student housing industry. You will need a letting agent. Even though it costs to hire one, a letting agent will reduce greatly the number of hours you actually spend actively running your business. They also have established relationships with schools in Peterborough and this can get accredited faster.
You need to comply with all the rules and regulations set by the council to avoid getting in trouble with the law. Obtain all the required licensing and make sure that your building passes all the inspections conducted by the council.
Keep squeaky clean records and have all contracts well written out and signed by all parties involved. They become very useful during disputes.
Peterborough is a ready and waiting market for investors who are looking for opportunities in student housing. Going by the projections being made by various expert institutions, this boom is likely to benefit investors for a long time to come. Success and yields are guaranteed with student housing in Peterborough so the sooner you invest, the earlier you can begin to reap the financial benefits that await you.