It’s been a strange and volatile year. The industry has warned for several years about the impact of Brexit but now we have a pandemic to contend with. Some landlords and their agents are anxious about what the market will look like in 2021. However, repeated reports show that in amongst all the volatility, the student rental market is stable and consistently delivers high yields.

Student Rental Yield Explained

According to a recent report, average student rent yields is 4.4% as a national average. But why is this consistently the case?

There is always a demand for student properties. Unlike the general population, they are rarely influenced by exterior issues such as the economy. Education is an investment, a decision rarely made on finances alone.

Your real only concern is the internal market. These issues include what your competitors are doing, what they offer, and whether you’re falling behind customer needs.

Scotland Remains Best for Yields

Scotland is consistently the best for rental yields on student accommodation. In a recent report, the top came out as:

•         University of Dundee (postcode: DD1) first at an average 7.2%.
•         University of Aberdeen was second (postcode: AB24) at an average of 6.8%
•         University of Strathclyde (postcode: G1) at an average 6.62%

England then dominates the next six with Leicester (LE1, 6.6%), Birmingham (B4, 6.5%) and Leeds (LS2, 6.41%). Top Welsh district was Cardiff’s CF10 at 5.9% while Belfast’s BL7 was Northern Ireland’s top rated at 5.9%.

While London Remains the Worst Performing for Yields

Unsurprisingly, the bottom performing student rental yields were in the capital.

•         Bottom, and the lowest yield, was SW7 (the nearest to Imperial College) with just 1.7% yield
•         Joint second last was WC2, home to students from both King’s College London and London School of Economics. They matched just 2.3%

WC1 takes both the fourth bottom and fifth bottom, serving University College London and SOAS. Rental yield there is just 2.7%. One more place takes us out of London and to Bristol. BS8 serves University of Bristol and an average yield of 3.0%.

The cost of living in the capital has been an ongoing debate for years, as is the cost of buying and renting property. Student accommodation is no different from the general population in that regard. The one way in which it is different is demand.

Why is Student Rental the Best Investment?

Repeated reports show little to no Brexit impact over the last few years on student accommodation yields. That will continue as we exit the Transition Period in 2021. Students will still seek education and need accommodation.

In the here and now, with students now back at university, the pandemic won’t be around forever. Universities are doing what they can to mitigate spread on campus.