Student Property Investors Undeterred By Stamp Duty Hike
Despite fears of a lull in market activity in the wake of the stamp duty changes, FHP Student Living have completed the sale of a 20 bed student portfolio investment in Lenton on behalf of Custodian Capital, having been their sole letting and managing agents since 2009.
The fully let development was sold to private investors for £1.2million and is made up of 10 individual 2 bedroom apartments, located in a perfect location for students, just a 10 minute walk from University of Nottingham and QMC.
FHP Student Living were pivotal in its turnaround, having suggested a repositioning from a professional development into a student accommodation in 2012, and as such, the site has since been at full occupancy for four consecutive years and is set to achieve a healthy 6.97% yield.
Alex Nix, Assistant Fund Manager at Custodian Capital comments:
“The development at Cottesmore Road was a great development for its purpose as student accommodation. It’s prime location in the heart of Lenton helped ensure rent increases year on year, with full occupancy on a consistent basis.”
There were fears of the stamp duty hike deterring activity in the property industry, however this £1.2 million sale completed after the changes, showing there’s still appetite in the market, and in fact UK investment volumes into student property hit £5.1billion in 2015, that’s double what it was in 2014, and it is expected to continue.
“FHP Student Living were very helpful in all aspects of their service, firstly letting & managing the whole development for around 7 or 8 years before then finding a buyer in a time where the market was supposed to suffer after the hike in stamp duty. The whole process was managed professionally and we can now re-invest having made a profit on the development.”
Jonty Green, lettings and sales consultant at FHP Student Living, comments:
“In just this last year, FHP Student Living have exchanged on over £10million of student accommodation across 67 properties, reflecting how fast paced the student sector is at present. Quality accommodation is more in demand than ever, and despite the stamp duty hike, we are currently inundated with buyers, and as such when a new student investment is brought to market it can be snapped up in a matter of days.”
If you would like FHP Student Living to assist in selling your property, whether a full portfolio or individual properties, please get in touch with Jonty on 0115 964 4631 or email email@example.com