With reported reservations of 98% in H1, student housing is set to be one of the UK’s busiest markets in H2 2023. Unite Students reported that reservations had risen from 92% to 98% in the first half of the year, with rental growth also doubling from 3.5% to 7%. To make sure you’re ready for this sought-after market, read on!
Make the Most of the Market
More than a million students move into accommodation each year, choosing between houses of multiple occupation (HMOs) and purpose-built student accommodation (PBSAs). Demand for both types of accommodation is through the roof, with Richard Smith, Chief Executive at Unite, saying: “The need for new student homes is the greatest we have seen for several years.”
For student landlords, this thriving marketing presents a fantastic opportunity. Students are a steady, reliable source of income for landlords, especially amidst rising mortgage costs, increased environmental regulations, and the looming Renters’ Reform Bill. With more than a million students looking for accommodation, a 98% occupancy rate, and demand from universities rising by 54%, this is an exciting time for student landlords.
Do More with Properties
Unite’s CFO has also warned of potential pitfalls with student accommodation. With such fierce competition for places, his advice was to ensure affordability, especially given the cost-of-living crisis. He said that the key was taking a “balanced approach” to be in line with universities and what they charge.
However, this doesn’t mean that your yields have to stagnate. With Opago’s flexible solutions, your annual yield can rise exponentially, even when keeping student rates “balanced”. Our revolutionary Void to Flex model allows landlords to do more with their properties, and this is fantastic for student landlords.
Between September and June, properties are filled with students, but this still leaves the best part of three months to explore our flexible solutions. At Opago, we manage your property from day one with two goals in mind - increasing returns and scaling your operations. Our expertise in commercial, operational, and advisory services allows us to take care of everything from distribution and reservations to housekeeping and maintenance, as well as further property development where required.
For student landlords, these services increase your overall yield by offering short stays over the summer. This increases overall property profitability and takes the stress away from landlords in their off-season. We’ve also found that properties being filled in traditional void months also protects the investment. Maintenance and compliance tasks can all be flagged by guests, meaning everything is in top condition when students arrive in September.
What’s Next?
Now is the time to do more with your student properties. Opago is on hand to help with all aspects of the transition from void to flex, and to help you achieve fantastic results in H2 2023 and beyond. Our expertise in the student accommodation industry is backed by outstanding on-the-ground teams, and we’re ready to get your started today.
Get in touch with our team today to find out more about what we can do for you and your portfolio, including fantastic white label options.
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