The ins and outs of UK student real estate market operation

student property UKFor the recent decade the analysts admit the record growth in demand for real estate in major university cities in the UK. A similar trend was triggered by a sharp influx of foreign students who come to England from Asia, Western Europe, Eastern states and the CIS countries. The maximum demand for cost-effective student apartments is observed in the leading university cities, for example, in Oxford, Sheffield, Liverpool, Cambridge, Manchester and many others.

Characteristically, the demand for student property sector in cities such as Liverpool and Manchester exceeded the demand for residential properties in London. This directly affected the intensity of the pace of growth in rental rates, which have increased by 25% over the last year in Liverpool and Manchester. In turn, high yield of student real estate has raised the investment appeal to these objects. Among the factors that increase the volume of foreign investment in student property in England the following ones are listed:

  • Rapid price rise and intense increase in rental rates;
  • High levels of yield. Management companies provide investors with yields of 6%  -9% for property rental;
  • Reduced risks. Investments in real estate are typically the most predictable and transparent types of investments, the yield of which is provided by the stable growth of prices for the rental and sales market;
  • The ability to make the mid and long-term investments. Net profit can form a resale property at higher prices.
  • The ability to transfer the management of real estate companies. Management companies will be looking for creditworthy tenants, transfer of income to the owner, control rooms, etc.;
  • Stable profit at the end of each quarter.

Buying a property outside of the UK

The process of buying property in the UK student admits the absence of a buyer for the country. For the transaction the investor is required translated into English copy of a passport, an additional notarised. It is also required to provide a bank statement certifying the place of residence of the buyer. The first amount of £ 5,000 is transferred either through a bank or paid by card. After that, the transaction involves conveyancing solicitor of the two parties (developer and investor). You may want to check to find a solicitor and get stunning quality legal support to minimise all the risks, as well as guarantee transparency of transactions and their effectiveness.

The costs incurred by the investor when payment for legal services

In England, any type of transaction associated with real estate purchasing is conducted through solicitors. The volume of expenditure will depend on the complexity of the procedure of purchase, however, as a rule, they vary in the range of £1,200 – £1,500, but may go way higher. If the investor conducts several operations to purchase a variety of apartments or in case the customer is looking to acquire a costly premises, then the service is likely to reduce the price for its services. The volume of net income from the rental or resale of student property will depend on the size and successful planning. Then you can see an indication of the annual rental yield of investing in a particular construction project.