Since the Government introduced higher rates of stamp duty on buy to let properties, investors have been looking for ways to make their money work harder. Opportunities that offer significant returns are in demand, with many landlords looking to diversify their portfolios.
One area that’s becoming increasingly popular is student housing. Students across the country now expect higher standards of accommodation, with many willing to pay for ensuite bathrooms, prime locations and other housing perks. With Norfolk home to some of the country’s most popular universities, it’s no surprise that student housing is top of the agenda for many investors in the county.
Students in Norfolk
Thanks to the number of students who live in Norfolk, and Norwich in particular, the county is an excellent choice for investors looking to move into student housing. The University of East Anglia is based in Norwich, with many of its 17,000 students and staff residing in the city. One of the top research universities in Europe and the 14th best higher education institution in the UK, UEA attracts students from around the world. The Norwich University of the Arts is also based in Norfolk, adding around 2,000 people to the student population of the county.
During the recent financial crisis, many areas of the housing market took a hit. However, as students continued to go to university, student accommodation continued to perform well throughout the credit crunch. As Norfolk is home to not one but two respected universities, it’s a very safe bet that the county will continue to attract students year in year out, giving local landlords a reliable source of tenants for their properties.
Most UK universities already struggle to provide adequate housing for their student population. And with student numbers set to rise dramatically in the coming years, the demand for accommodation doesn’t show any sign of falling.
As everyone in a student house is contributing towards the rent, students can often afford to pay more for a property than other types of tenants. If a landlord converts their property into a House of Multiple Occupancy or an HMO, they’ll be able to utilise every room in the building and maximise its potential for rental income.
Though converting a property into an HMO takes a little time and money, the returns are generally well worth the extra investment.
Students want to be in the heart of the action. This means that properties in the city centre or close to the university will be most sought after. Houses in prime locations should see continued demand, with landlords finding it very easy to replace tenants when the academic year comes to an end.
Interested in finding out more about investing in property in Norfolk? If so please send us a message or get in touch with Richard or Wayne on 01603 567804.
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