You’ve probably heard it all before;
“Invest in student property in Liverpool!”
“Manchester is the new student property hotspot!”
We know, its repetitive. It’s been done before for a number of years. Don’t get me wrong, Liverpool and Manchester are strong investment locations with large student populations and proven income generation, but are there too many investors jumping on this bandwagon? What about new hotspots that are actually emerging?
For those who want to be one of the first to get in on the latest up-and-coming student property locations, you have come to the right place. We too are sick of seeing companies constantly promoting over-done areas when we know there are areas where returns can be higher. Newcastle-Under-Lyme is one of them.
A Bit More About Newcastle-Under-Lyme
Not everyone has heard of this historic market town. I am based in London, so I just assumed Newcastle-Under-Lyme was part of Newcastle-Upon-Tyne in the North East. Newcastle-Under-Lyme is located in Staffordshire, forming part of Stoke-on-Trent. Other towns close to Newcastle-Under-Lyme include Keele and Stafford. Situated in the West Midlands, it is an area that is developing quickly and now being recognised for lucrative property investment opportunities.
Newcastle-Under-Lyme is known for it’s history. There are a variety of different attractions such as The New Vic Theatre, Queen’s Gardens, The Guildhall, traditional market, museums, and pubs.
Key points about Newcastle-Under-Lyme:
The Case of Student Accommodation in Newcastle-Under-Lyme
There is a massive under-supply of student accommodation in the Newcastle-Under-Lyme and Stoke-on-Trent. The Purpose Built Student Accommodation sector in this area compared to other areas of the UK with similar student populations is in it’s infancy.
Many of the beds available are owned by the universities, which have a dated and cramped feel. The direct let market in Newcastle-Under-Lyme only has 160 beds available in the Keele House scheme and an additional 440 beds in Stoke-on-Trent across 3 schemes.
According to these figures and Keele’s forecasted student numbers growth, around 80% of students will not have access to PBSA.
For this reason, it is the perfect time for investors to take advantage of Newcastle-Under-Lyme.
Newcastle-Under-Lyme is different to the locations with more developed PBSA markets because it is at the stage where there is massive potential for growth and returns. How do I know this? Because years ago, Liverpool was at the same stage. Today, Liverpool has reached a peak and it is known worldwide for profitable student accommodation investments.
Unfortunately, as the market changes and more investors are putting their capital into certain locations, there comes a time when you need to find other areas in order to stand-out and not settle for extortionate property prices and a 4% yearly return.
To effectively exercise your capital, think about putting your money into Newcastle-Under-Lyme, an area that will build the foundation for a sustainable investment.