It is simple to see why many people believe investing in buy-to-let property is a smart way to make money. There is a significant demand for rental property, and this doesn’t look like faltering any time soon. While first-time buyers receive support to step on to the property ladder, it isn’t enough to help for some prospective buyers.
The sums of money required to put down a deposit mean buying a home remains out of reach for a lot of households. Also, a lot of people aren’t confident about obtaining a mortgage. Even though some lenders show a willingness to help buyers, many still find themselves crowded out of the mortgage market.
Therefore, there will always be a rental market. The rental market is also growing and evolving. Students and young professionals used to be the cornerstone of the rental market. This remains the case, but families and elderly couples are just as likely to rent these days. Today, tenants come in all shapes and sizes, and from all backgrounds.
Investors and landlords have a big decision to make
You may think this is welcome news for Coventry landlords. However, if prices rise and people find themselves priced out of the market, investors must also pay a more significant rate. Landlords also have other charges to pay, with additional stamp duty fees. There may be demand for rental property, but if landlords find themselves struggling to pay for the property, they can’t let a property.
Don’t forget that buy-to-let mortgages are harder to obtain than standard mortgages. Many homeowners who qualify for a mortgage find themselves unable to arrange affordable funding to buy a property to let.
It is not even as though investors can use a standard mortgage to buy property, and then let the house. This breaches the terms of many lenders and would see the investor in significant trouble. Many complications are surrounding the rental market and buy-to-let mortgages, and the situation shouldn’t be taken lightly.
Consider investment opportunities in the correct manner
The matter should be viewed as a business, and this is where there is an opportunity for investors and savvy landlords. We previously mentioned the student market as a cornerstone of the rental market. The market has evolved, but the student market is still a crucial component of the UK rental landscape. Also, for many investors, student letting may be the sensible option to generate a return on their money.
From a business perspective, it is helpful to view which businesses are thriving. One company which is performing well these days is the United Group. Whether you look at the stock market, at new developments or consensus, this is a company which delivers well. This suggests there is an opportunity to achieve success in the student accommodation market, and this is a big business in 2019. It is likely to remain a big business for many years to come.
By specialising in this sector, landlords and investors can develop a positive reputation. By combining much-needed property with a piece of local knowledge or insight, landlords can make themselves an affordable and suitable option for students and their families.
The student population in the UK is growing, and this is expected to continue. City analysts have reviewed the performance of Unite, and they expect the firm to continue enjoying annual earnings increases, which are in double-digits.
Coventry is a smart choice for student accommodation
If you take Coventry as an example, it becomes clear how important the student population is. In 2015, the population was estimated at 345,385. This population ranked Coventry as the 9th largest city in England and the 12th largest city in the whole of the United Kingdom.
In 2017, Coventry University had a student body of over 31,000 students. This led the university to be hailed as the fastest growing university in the whole of the United Kingdom. The University of Warwick, according to estimates for 2019, can boast of over 26,000 full-time students.
This means there may well be a student population of more than 55,000 in Coventry. With around 15,000 of these students originating from outside of the United Kingdom, the demand for student rental accommodation in Coventry is evident. There are other cities which can boast of positive figures too, but there are many factors which make Coventry a great area to invest in:
1. The city’s location makes it suitable for investors from all over the UK, and even beyond
2. The high proportion of graduates who remain in the city finding employment is a decisive factor
3. Coventry offers more affordable investment opportunities than many leading cities in the UK
If the thought of investing in student accommodation in Coventry appeals to you, here are some top tips to succeed in the industry:
· You must undertake significant research before investing in an area or property
· Once you let property to students, inspect the rental property regularly
· Make yourself aware of health and safety regulations you must comply with
· Carry out an inventory check when student tenants move into the rental property
· Ensure the rental property is adequately insulated
· Try to develop a positive relationship with the tenants
While being a student landlord can be lucrative, the tips inform you that there is a lot of work to do in this sector. Many student landlords decide to call in support, and this is an area where you may benefit. If you are unsure whether you can remember all health and safety regulations to ensure you comply with them, call on an expert for support in this matter.
If you are intrigued by the student accommodation market, it makes sense to call on experts for support. At Student Circle, we are pleased to say we have assisted many investors and landlords review the Coventry student market.
We understand what students in the area are looking for, and we know how investors and landlords can meet the demands of this sizable market. If you need guidance or support to reach out to students in Coventry, or you require assistance in investing in student accommodation in Coventry, please get in touch, and we’ll be happy to help.