A sharp rise in the number of post-graduate students is creating new opportunities for buy-to-let investors, according to new research from Assetz.
The number of post-graduate students in the UK has increased 13.4% since 2007, of whom more than 50% are overseas students.
A shortage of bespoke post-grad accommodation has created new high-yield opportunities for investors, in the same way the undergraduate accommodation has over the last 10 years.
Glasgow, Leicester, Liverpool, Southampton and York are all post-grad hotspots, Assetz said.
Investors looking to diversify or increase their buy-to-let portfolios can secure net yields of up to 8% in some of the strongest post-grad universities, including De Montfort University in Leicester and Glasgow University.
China, India and Nigeria top the list of international post-grad students with Germany, Republic of Ireland and France supplying students in the greatest numbers within the EU.
Stuart Law, CEO of Assetz, said: “Undergraduate student hall of residence accommodation has long been a sound buy-to-let investment opportunity, offering excellent yields, but the lucrative market in high quality post-graduate accommodation is only just starting to materialise.
"Many students are continuing to study after their undergraduate degree due to the current competition in the UK jobs market and overseas students are drawn to the UK for its excellent standard of university education.
“Our experience is that post-grads have a clear preference for their own space, self-contained hotel-style studio apartments which facilitate independent living in a well-managed building that permits peaceful study.
"Many extra facilities are available for overseas students such as, for example, rice cookers.
"Net yields of up to 8% and low entry prices from £65,000 for a self-contained studio apartment are a fantastic income producing investment for investors' long term income needs.”
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