Studio apartments are becoming a big part of the UK property market, appealing to a growing number of investors. With a bedroom, dining area, living room and kitchen all contained within the one room, studio apartments represent a more functional way of living. Here are some of the reasons why you should consider a studio apartment for your next investment.
The aim of any property investment is to make as much money as possible, which is made possible through high rental yields. Studio apartments have some of the highest rental yields of any property investment due to their low costs. Prices for studio apartments are often low due to their size, but with a high demand from growing populations in several UK cities, people are willing to pay similar amounts for a studio as they would for a one-bedroom apartment. If the studio apartment is a new-build with a more luxury, modern design, rental costs can go even higher.
Part of this growing demand for high-quality studio apartments lies in the population of young professionals and students in the UK. Major property investment hotspots like Manchester and Liverpool have some of the highest student populations in the UK, with Manchester being home to the largest single-site university in the country. There are on average 3.5 students per room throughout the UK, leaving large numbers of student tenants in need of quality accommodation.
Student accommodation is not what it used to be in the UK. In the past, students were happy to settle for shared housing in a run-down period property, whilst today, apartments with a more luxury and modern edge are preferred. Students are keen to rent accommodation that’s stylish, convenient and has everything they need for a comfortable university experience. Studio apartments can be the ideal living situation for a student who prefers their own privacy but doesn’t want to rent a larger property all to themselves.
Young professionals are another type of tenant who could benefit from studio apartment living. Many young people prefer their own space, for which a studio is a great option as it gives the tenant their own privacy but is still relatively affordable. Studio apartments from property investment companies like RW Invest are based in popular city centre locations which are convenient for professionals working in the city.
The target market for studio apartments doesn’t end there, however, as these types of properties may also appeal to an older clientèle. Numbers of middle-aged people living alone in the UK have soared in recent years, meaning studio apartments could be a perfect alternative to living in a large residential property.
With a large and varied target market, increasing demand and high rental yields, investing in a studio property might just be the best option for your next UK property investment.
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