Student Property Investment in Cardiff –Buy-to-let Accommodation Guide

4 mins read

If you are looking at student property investment in Cardiff, the key to making this type of real estate endeavour work for you is to do your homework. There is certainly a lucrative market there. Research surveys say students make up 20% of the population in Cardiff, averaging 65,000 people.

They attend universities like Cardiff, Cardiff metropolitan, Glamorgan, Cardiff sixth form and the Vale college, and contribute billions towards the economy, rental properties and living expenses. Research also shows that across the UK, university applications are up despite a COVID environment, and these also include applications from international students.


Tenant students are turning away from the typical, shared, central terrace houses seen in many cities and instead choosing purpose-built student accommodation (PBSA.) They cite reasons as better living conditions because many of the terraced houses were built during the Victorian era. So it is no wonder they are choosing the new, modern type of accommodation.

This is where real estate investors should look as well. Separating the rental market from the non-student population, it is a different ball game but for property investors can provide lucrative returns. Such is the potential, the PBSA market in the UK has now overtaken the equivalent in the USA. But what do you need to know about this unique investment option?

Student Property Investment in Cardiff

In years gone by, renting students typically opted for shared housing with communal kitchens, bathrooms and living rooms. Purposely built student accommodation is fast overtaking them because they are studio apartments with your kitchen and bathroom. For landlords and anyone investing in real estate, they present many opportunities including rental yields, but if purchased off-plan, ideal discounted prices.

These purposely built student accommodation apartments are the perfect example. Offering 6.5% rental yield for a minimum of 3 years, the building as well as featuring studios, also includes duplex and premium apartments, if you want to target the upper end of the market. Sitting near Cardiff university, and within 5 minutes’ walk of shops, it is a prime, central location, and a benefit since much of Cardiff’s current student accommodation is further away.

buy to let Accommodation

Ranging in size from 17.6 square meters, all have fully fitted kitchen and bathrooms. With the investment wholly managed for you, and flats due for completion in 2021, when 80% of the balance will be paid, investors can see the beginning stages, which are already 100% let. (Quote ref numbers UKCARA186 to 189 for more information via email.)

Pros of Investing in Purpose-built Student Accommodation

  • High demand in Cardiff due to the standard of housing
  • Less maintenance and upkeep for landlords because of the new home status
  • Off-plan investment property prices
  • The central location ensures higher returns on your buy-to-let investment
  • Ideal capital growth appreciation on the housing market
  • Students are ideal for a rental income since parents often stand guarantor
  • Students are also ideal tenants with a reputation of taking care of the property
  • Lower house prices than residential properties
  • PBSA Providers help you manage your investment and landlord marketing
  • Investing in the typically shared housing requires a licence if it holds more than five tenants
  • Growing student market base thanks to an increase in applications
  • Full guidance through the investment process by the management company
  • An ideal addition to a property portfolio since it diversifies from commercial real estate and residential property
  • Ideal for overseas property buyers looking to enter the UK market.

Need to Know: As with anywhere in the world, consider taxes, when investing in student accommodation. If it is your second home, you will need to pay the equivalent stamp duty and should you decide to sell the property at any time, factor in capital gains tax on any profit value.

Is Cardiff a Good Place to Invest in Property?

Putting aside home buyers and the student accommodation aspect, overall is Cardiff a city to sit up and take notice off. Don’t underestimate its potential. Despite being the capital of Wales, affordability is one of its strong points, giving it an edge over cities The local councils’ official website says they are the UK’s fastest-growing city.

With increasingly more businesses and house buyers turning away from highly-priced areas like London, there is much potential for the future. Major companies and start-ups are choosing to base themselves there, and the university reputation stems worldwide attracting students from places as far as away as China.

They have also invested millions into their infrastructure, including high-speed trains to 100 other destinations, and the central square regeneration programme looks to support up to 30,000 jobs. Their approach for the private and public sectors to help each other makes it a prime place for business, education, and real estate investment.

Find Out More

To find out more about investing in Cardiff’s property market, or countrywide, call us today and speak with a local agent about PBSA. Alternatively, see our full range of opportunities focused on student property investment in Cardiff here. Each listing contains everything to know, including map location, prices, and home features. Just use the enquiry form to find out more or arrange a viewing.

About Us: We are Spot Blue real estate agent. Operating since 2003, we provide a valuable and stress free service to all our clients whether they want help to buy in Cardiff or any of our other UK or international locations. Keep up to date with real estate investment opportunities, news, and our services by following us on Facebook, or see our UK real estate blog here.

Student Property Investment Cardiff

About Natalie

Natalie is a dedicated real estate professional currently working at Spot Blue International Property. With over a decade of experience in the industry, she has acquired a wealth of knowledge and expertise regarding global properties.