Careful study brings buy-to-let rewards

Released on: February 14, 2008, 9:02 am

Press Release Author: Jim watson

Industry: Real Estate

Press Release Summary: Investors looking for the best opportunities in buy-to-let
property the UK may be best off deciding to follow those who study hard.

Press Release Body: Investors looking for the best opportunities in buy-to-let
property the UK may be best off deciding to follow those who study hard.

This is doubly so, according to property consultancy King Sturge. Partly it is a
case of studying where the market is and then discovering the market is where people
study, reports Residential Landlord.

King Sturge\'s research into the situation has revealed that last year it was worth
over 700 million in transactions. It has also concluded that the student sector can
now be classed as a market in its own right, quite separate from any other.

Furthermore, King Sturge reported, demand is growing faster than supply can meet.
\"This year we have recorded a strong increase in the number of privately developed,
purpose-built beds, up by 36 per cent since 2005 to more than 123,500,\" said Philip
Hillman, head of the firm\'s student accommodation group. Yet the supply is still not
keeping up, with a six per cent increase in the last academic year in student
numbers.

This growing market may help a number of towns and cities remain good investment
locations. Manchester, which has 70,000 students according to Residential Landlord,
is made more attractive by its \"huge student base\", stated Tom Rogers, residential
investment consultant at Savills in the city. (Manchesterfacts.com puts the student
number higher still at 100,000, with this tally including all four universities -
Manchester and Manchester Metropolitan plus Salford and Bolton - in the
conurbation).

Another example of this is Middlesbrough, where John Murphy, managing director of
Alpha Independent Financial Planning in the town, told the Evening Gazette \"high
student population\" in the area was one of the reasons for the town having strong
buy-to-let prospects.

Furthermore, studies in the past year have shown that the yields landlords can gain
from renting to students tend to be greater than in the overall buy-to-let sector.
Last October, for instance, a study by Paragon revealed that student property yields
tended to be 25 per cent higher. Paragon group chief executive Nigel Terrington
commented: \"Strong tenant demand in the student market is driving yields in that
sector. If landlords select the right type of property in the right location, the
returns from the student market can be extremely healthy.\"

It is not just in established university towns and cities that this market exists.
Many new towns and cities have begun to host university education for the first time
this academic year, opening up whole new markets for buy-to-let where none
previously existed. While some places may be growing, these have been starting from
scratch.

One example has seen university education in Ipswich for the first time, with the
advent of University Campus Suffolk, a collaboration between the universities of
Essex and East Anglia. Another case has been that of the University of Cumbria,
which has taken over existing University of Lancaster campuses and expanded them, as
well as absorbing other local institutions. The result is that Carlisle has become
the centre of a university rather than an outpost.

As a consequence both locations - isolated from major cities and with population of
a little over 100,000 - have been faced with a quick adjustment while only having a
finite number of properties. These in turn have created new opportunities for
landlords.

Where these have gone, other towns and cities may soon follow, bringing substantial
student numbers to places which at present have few or none. Investors looking to
make the most of this market may do well to keep studying where the next such
developments are taking place.

In today\'s world Property investment is an excellent investment option especially
investment in UK

Web Site: http://www.assetz.co.uk/

Contact Details: Address:Assetz House, Newby Road, Stockport,Cheshire

zip:SK7 5DA

ph:0845 400 7000

fax:0845 400 6010

email:linkexchangeseo@gmail.com

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