With yields of up to six percent, the large student population, including an influx from the Far East, has placed additional pressure on current stock, resulting in the city seeing some of the steepest rent rises in the country.
The lack of quality student accommodation in the world-heritage city has therefore prompted canny investors – including parents of children studying at university – to consider Crest Nicholson’s Bath Riverside.
Susan Young, sales and marketing director at Crest Nicholson believes those wanting to make the most of the city’s popularity need to act now to make the most of the current yields.
Susan said: “Today’s students have much higher expectations in terms of the standard of living they expect and the prevailing rental demand across Bath is now concentrating investor attention at Bath Riverside.
“The University of Bath’s standing as one of the top five universities in the UK and the city’s appeal to foreign students makes the world heritage city a stable bet for those looking for a decent return.
“Much of the existing rental property in surrounding residential areas has long since been snapped up by existing and first-time landlords, with many traditional family homes having changed to houses in multiple-occupation.
“With yields being as much as 20 per cent higher in new properties, void periods much shorter and maintenance costs lower, buying a new property at the development makes for a very attractive investment package.
“Many also see investing in property as a means to not waste money on rent. It also helps generate an income as well as a steady investment through capital appreciation.
“With Bath Riverside being the most significant property development in the city, it is not surprising we are attracting investors who are looking at new build for letting opportunities right in the centre of town.”
Current availability at Bath Riverside includes a number of one-bedroom apartments in Leopold House, ideal for investors, plus some stunning top-floor penthouses. And as demand continues to outstrip supply will, according to the Crest Nicholson team, result in both rent and capital appreciation continuing to rise.
Susan added: “We have calculated that, in the current market, investors can expect a potential return of between 5 per cent to 6 per cent* on a one-bedroom apartment at Bath Riverside so striking now would mean getting the most for your investment not only in potential equity but also rental returns.
“And because the properties here are brand new owners can expect there to be virtually no initial maintenance costs - always a tremendous benefit for a landlord.”
For further information please call 01225 463517 or visit www.crestnicholson.com/bathriverside
The marketing suite on Victoria Bridge Road is open daily from 10 am to 5pm.
* Based on current valuations