Investors can take advantage of a rare opportunity in Worcester as a purpose-built student accommodation building which is already fully let for the next academic year comes on the market.
Leading property consultancy Fisher German is marketing Court Mews – a high-yielding student accommodation building located in the city centre.
The property, in Farrier Street, includes a total of 48 ensuite rooms, divided across six self-contained units which each includes a communal kitchen and lounge area, and has a rental income of £302,400 pa.
The property is in a prominent location within the city, benefitting from a strong retail, restaurant and café offering attracting students from the University of Worcester, which has recently opened its new £16 million Three Counties Medical School.
The investment opportunity is on the market for £3,100,000, reflecting a Net Initial Yield of 6.91 per cent.
Fisher German is advising investors to consider adding student accommodation to their portfolio now more than ever, as data from StuRents – the country’s largest portal for student accommodation – forecasts that there will be a shortage of around 450,000 student beds nationally by 2025.
Associate Lauren Allcoat said that demand is already outstripping supply across the UK, and this picture is mirrored locally in Worcester.
She said: “Despite the current economic uncertainty faced by the UK economy, there is little doubt that the demand for purpose-built student accommodation is growing in university cities.
“With demand for affordable student lets outstripping supply and 46 per cent of students renting from private landlords nationally, the private sector has been under significant pressure to fill the shortfall in student accommodation.
“Applicant numbers for undergraduate courses in September 2022 reached a new record level, with 450,000 people taking up a place at university.
“This has resulted in the demand for student accommodation skyrocketing across the UK, something which shows no sign of slowing for the 2023/24 academic year as more students than ever return to on-campus learning and normality occurring after the Covid-induced hiatus of remote study.
“It is therefore no wonder that investors are switching their focus to student accommodation as there is potential for significant income generation to be made owing to this growing supply-demand imbalance.
“It is also incredibly rare that purpose-built, high-yielding student accommodation comes onto the market.
“The picture being painted in Worcester very much mirrors the national one in terms of supply and demand, and anyone wanting to benefit from a diversified portfolio should consider the opportunities that student accommodation can offer.
“Worcester is an incredibly buoyant city, with areas across the city centre benefitting from regeneration and the university investing millions of pounds in new facilities, all of which will help to increase its student population.”
Further information about Court Mews is available by contacting Lauren Allcoat on 01905 728 449 or by emailing Lauren.allcoat@fishergerman.co.uk