Landlords plan to add student housing to their portfolios

A growing number of landlords are looking to offset the new tax rules and remain profitable by acquiring student property, new research shows.

The study, commissioned by The Mistoria Group, investment specialists in student property, shows that over a third of student property investors plan to expand their portfolios in 2016, despite the chancellor’s new stamp duty measures.

Some 10% of the landlords surveyed said that their HMOs enable them to offset the new tax rules and remain profitable, thanks to the fact that student property continues to be one of the highest performing asset class categories.

“The student property is a robust asset class. Since 2011, student accommodation has outperformed all other traditional property assets and has been the strongest growing investment property market in the UK,” said Mish Liyanage, managing director of The Mistoria Group.

Like the rest of the buy-to-let market, student property investors also rushed to beat the stamp duty hike at the start of April, with the research revealing that 35% of student landlords purchased HMO properties in the first quarter of 2016. A further 43% of landlords plan to acquire between two and three new student properties over the next 18 months.

Liyanage added: ““The growth in student numbers is a great opportunity for landlords and investors to provide the right type of property that will attract lucrative students. Student accommodation has proven to provide better rental yields and there is an annual market for new students. What’s more, the rent is guaranteed by a parent or guardian and is paid promptly.” 

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