Why you should invest in student accommodation in central London


Once upon a time, university accommodation was grim. Dingy halls of residence were the standard of the day; however, today’s students have higher demands. This is because many parents have snapped up properties around their universities and rented them out to their children and their friends – hence there’s a vested interest to make these homes attractive to students.

London is one of the most popular cities in the world when it comes to students looking to study in the city. You’ve got top-performing universities such as LSE, UCL, Kings and Imperial, which all attract international students from across the world, so it’s no wonder many parents both in the UK and overseas look to purchase property for their offspring in the capital.

Here are a few points from West End estate agents, LDG as to why investing in student property in central London is a profitable investment:

Large population of students

One of the key concerns of many landlords is the ability to attract prospective tenants on an ongoing basis. By buying rental property near a university, this isn’t a problem as there will likely always be a long waiting list of renters ready to take their place. This is especially the case in a city like London.

Oh, and your property may attract more than just students. Professors and university staff also need housing so you’ve lots of options to find the right people.

Regular rental payments

The majority of students who opt for off-campus housing don’t actually pay their own rent! In the majority of instances, their parents actually pay for them. This means that payments will be made regularly and consistently – any landlord will tell you that this is a massive benefit.

Property values

In the main, university towns are a very good investment. This is because most accommodation is located close to good transport links and top-quality amenities. This means that property values tend to remain stable. As well as this, when you decide to eventually sell your rental property, you will likely discover that not only has the value increased, but there’s a strong demand for your property. It’s also not uncommon for university towns to put zoning restrictions into place in order to limit the growth of housing. This means you’ll face very little competition if you do decide to sell your property due to limited supply.

Just remember that there are always other factors to consider when you’re considering investing in a property. Maintenance costs are one pointer, as students are very bad at looking after properties that they rent. This is because it’s often the first time they’ve lived away from home. The chances are that you’ll have to refurnish the property regularly and costs can mount pretty quickly. Also, students tend to do well, um, student things like have parties!

As well as this, most students will look to rent a property for nine months out of a year and live in it between September and June. They won’t pay for the extra three months, meaning that you’ll have to account for this hole in your finances. Make sure you’re prepared.

Student accommodation in a city like London is a very good investment if you’re looking to the long-term. Just always bear in mind that there are pitfalls and be prepared for them.

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