Student Lets & Supported Living
Student Lets offer the ‘armchair investor' a low level entry into the property market, whilst the UK’s Supported Living sector now provides an alternative buy-to-let style investment.
In recent years, the purchase of purpose-built Student Let Accommodation has provided investors with significantly better returns than any bank deposit. This type of buy-to-let provides the opportunity to invest in new developments, offering the potential for capital growth, with guaranteed returns for three, four, or even five years. The returns vary for each development but recent offerings range between 4% and 8%.
Investors can rest easy in the knowledge that the property is managed by a professional agent, who will attend to all daily routine issues and ensure occupancy levels are maintained, causing this to be referred to as the 'armchair investment’.
A leading independent consultant, commenting on recent performance in this sector of the property market, reported that “total returns in the student accommodation sector have outperformed all other traditional classes of property investment”. Universities continue to struggle to accommodate students, yet there is an expectation that the number of international students seeking higher education will continue to grow, thus maintaining the imbalance of demand over supply.
A student unit can be bought for as little as £35,000 and whilst we can provide structuring for an investment of this size, the purchase of several units amounting to somewhere in the region of £125,000 - £150,000 provides geographical diversification with economies of scale and thus enabling higher net yields.
Fedelta has relationships with a number of suppliers of this type of investment, so if you would like to know more about this subject, please do not hesitate to contact us.
This sector focuses on the UK Government’s long-standing commitment to provide financial support to local authorities, for the housing requirements of vulnerable adults (service users).
The Government’s priority is to move away from institutional style accommodation and, instead, to offer service users and their care providers secure, long term housing in desirable neighbourhoods. The properties are owned by private investors, with rents paid by the Government.
Properties are typically packaged for investors as follows:
- high quality, freehold, residential housing in desirable locations.
- each property is renovated or adapted to an agreed high specification with a 25-year local authority underwritten lease. There are no void periods throughout the term.
- Average annual yields on each property are currently above 6%, and are annually adjusted for inflation, ensuring secure, inflation-protected income over an extended period.
- Returns don’t take into account any improvement in the capital value of the property over the 25-year term, all of which accrues to the investor.
Investing in the Supported Living sector is suitable for individuals, consortia or larger scale investment vehicles. Typically, the entry level investment for a single asset would start at around £200,000. There is no upper level investment limit. All property sourcing, renovation, adaption and on-going management is taken care on behalf of the investor.
For further information about this sector, contact us today, without obligation.
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