Published On: Tue, Jan 22nd, 2019

How to Decide between Residential and Student Property

Investing in the UK property market is a popular and effective way to boost your income and help you save for a more financially stable future. If you’re thinking about investing in UK property, there are a number of things you need to think about before going forward with your investment, such as the location and the type of property you want to invest in. Residential and student properties are the two main property types for investment in the UK, but how can you decide which is the best decision for you?


The student market is thriving in the UK, with high numbers of students choosing to study in the many cities and institutions year after year. The fact that UK universities consistently rank among the best universities in the world has helped the surge in overseas students, with a total of 442,375 non-UK students studying in the UK in 2016/2017. This abundance of overseas students contributed toward the 2.3 million total of students in the UK in the same years, leading to strong levels of demand for student rental properties.

residential and student property

In the North West, this demand for student property is at it’s highest. Manchester boasts the largest single-site university campus in the UK, the University Of Manchester, and has a total of over 90,000 students studying in the city’s many institutions. Manchester’s northern neighbour, Liverpool, has similar demand with a student population of over 70,000 and one of the biggest overseas student populations in the country.


The amount of overseas students and ever-growing demand in the UK is great news for investors. Student accommodation is often relatively inexpensive to buy compared to other types of property, but a large number of students are becoming increasingly willing to spend more on rental costs. This means that student property offers great potential for return on investment, especially in North West cities.


Like student accommodation, residential properties also offer excellent potential for UK investors. Residential apartments are a particularly strong choice, particularly in prime city-centre locations. These type of properties receive a lot of demand from young professional tenants, with more and more young people being drawn to cities like Manchester and Liverpool in recent years. Young professionals are often happy to spend extra on stylish, modern apartments in proximity to their workplace and the local attractions, generating some strong rental yields. RW Invest is a property company in the UK with North West based city-centre apartments that offer investors rental yields reaching as high as 7 and 8%.


So we know about the benefits of each type of property in terms of rental yields and demand, but what about the tenants themselves? Both students and young professionals are often considered some of the best tenants for buy to let investors to market their property towards. Students are known for being reliable with paying their rents, and young professionals are often more likely to stay in a property long-term if they’re happy with it. Both tenant types have strong demand which is likely to last many years to come, with the majority of young people being a lot more likely to rent than buy.


Now you know the main benefits of each property type, the best way to decide which is right for you is to weigh up the benefits against the disadvantages. One of the main downsides of renting to students is the fact that you may have to deal with noise complaints from neighbours, whilst young professional students may move around to follow new jobs, meaning you would have to regularly find new tenants. Once you’ve decided which risks you’re most likely to accept in a tenant, you’re on the right track to choosing your perfect investment property.