Research this week by CB Richard Ellis highlights the significant impact the student property investment has on the overall market and, according to Fife legal, financial and property specialists, this is also the case in Fife’s student town of St Andrews.
In St Andrews, property prices range from around £250,000 to £800,000 in popular rental areas and, dependent on its proximity to the town centre and university among other factors, the yield can vary significantly says Pagan Osborne’s Head of Letting Linda Black.
As well as achieving strong yields, it is the long-term investment value which is paramount to many investors.
“We sometimes find that today’s landlords and alumni of the university and have either kept their student property to let while they work elsewhere and want to keep a base in St Andrews.
“Parents of students have always made up a strong part of the student property market. However, recently we are starting to see a marked shift and have had enquiries from a number of buy-to-let investors.”
A rental yield on a student property in St Andrews can be between 4% and 12%. In the wider UK context, CB Richard Ellis reports investors are chasing average yields of up to 7%.
Linda says demand in St Andrews is still very high with no empty properties and students competing for prime accommodation. She added:
“The student property market is very important to St Andrews. And with investors often living outside the area and a high percentage living overseas, it’s imperative they use a local expert with a proven track record of managing that property and relationship. We work closely with our landlords and tenants to ensure the highest levels of service.
“Having a world class university, as well as a number of other attractions, continues to make St Andrews a very popular place for students, investors, businesses, tourists and families alike.”
The CB Richard Ellis report showed UK investors put around £348m into the student property market last year.