Mis sold a student let

lfc321

There have been big declines in student numbers (especially international
student numbers) at many universities over the last couple of years. It’s not a surprise that the demand for (and therefore value of) student properties has reduced, unfortunately. 

eddddy

If you're already discussing topics like "the number of  international students", you're at risk of being sucked into a scam.


Typically, the starting point is that a stranger who has a website is asking you to give them £65k.
(A bit like if a stranger in a pub asked you to give them £65k)

The questions you need to consider first, are things like:

• Who will my £65k go to?
• Who has invented this investment scheme?
• Have they previously run any successful investment schemes?
• (Or have they previously run any unsuccessful investment schemes)?
• What is their financial situation?
• Have they got convictions for fraud?
• Have they got a history of a string of bankrupt companies?
• Have they got any business acumen?
• Have they got a track record of building/converting student flats?
• Have they got a track record of renting out and managing student flats?

Or for example, are you dealing with a bunch of ex-used car salesmen, who have dreamt up a scheme in the hope of making themselves rich quickly?

Asimovs_nightfall

lfc321 said:

There have been big declines in student numbers (especially international
student numbers) at many universities over the last couple of years. It’s not a surprise that the demand for (and therefore value of) student properties has reduced, unfortunately. 

Demand for student accommodation is not falling, it's increasing. 

The number of students looking for accommodation in the UK is 1.5 million, translating into two students for every 1.1 beds, with the number expected to rise to 2.2 million by 2026.  In 2023/24 rental prices increased by 8% but for the private sector only, was 9.4%. (Cushman & Wakefield). 

A couple of other stats: 31% of students need parental help to pay for accommodation, while 36% of students had problem of damp (23/24).  The latter suggests the role of adapted housing for student accommodation.

All in all, prime for corporate involvement in the provision of purpose built student accommodation - a huge market and is growing as university provision becomes relatively less accessible - and especially for those who see the opportunity to extract money from uninformed 'investors'.

QrizB

Asimovs_nightfall said:

lfc321 said:

There have been big declines in student numbers (especially international
student numbers) at many universities over the last couple of years. It’s not a surprise that the demand for (and therefore value of) student properties has reduced, unfortunately. 

Demand for student accommodation is not falling, it's increasing.

What's your source for that?

The number of students has plateaued and fell slightly last academic year. It's odd that the demand for accommodation is forecast to increase.

https://www.hesa.ac.uk/news/20-03-2025/sb271-higher-education-student-statistics/numbers

RHemmings

QrizB said:

Asimovs_nightfall said:

lfc321 said:

There have been big declines in student numbers (especially international
student numbers) at many universities over the last couple of years. It’s not a surprise that the demand for (and therefore value of) student properties has reduced, unfortunately. 

Demand for student accommodation is not falling, it's increasing.

What's your source for that?

The number of students has plateaued and fell slightly last academic year. It's odd that the demand for accommodation is forecast to increase.

https://www.hesa.ac.uk/news/20-03-2025/sb271-higher-education-student-statistics/numbers

There are many sources claiming that demand for student housing is increasing. E.g.:

https://www.hepi.ac.uk/2024/11/20/student-accommodation-after-2024-and-the-need-for-strategic-realignment/

That article says that falls in undergraduate numbers and international students has 'bought time', but has not solved the problem.

More discussion here: https://www.confused.com/student/student-accommodation-statistics

ReadySteadyPop

QrizB said:

ReadySteadyPop said:

Uriziel said:

The thing about students is that they only have that much money unlike working people where you can find wealthy buyers and renters. I don't think you should be expecting increase in value from anything related to students. Have you not made £20k over those last 3 years? So you would be essentially selling at cost? I would just take it and move on.

Many overseas students are from well-off/wealthy families, they need to be to afford the fees now?

You might not have noticed (if you've been avoiding UK politics for the last decade) but the government is restricting the number of student visas it issues.

You can't rely on wealthy foreigners renting your student lets.

You are saying that for the last decade the government has been restricting the number of student visas it issues?

https://www.bbc.co.uk/news/articles/cwyjlenv877o

saajan_12

"Mis sold" - there's no consumer protections saying real estate has to be sold to you in a certain way. Its up to you to do the due dilligence with solicitors, surveyors, lettings agents etc to decide for yourself if its a good buy. So assuming youre 100% correct that the returns they suggested are not materialising, you still have no case. 

MeteredOut

OP has not been back since posting. I suspect they've realised they've made a bad investment decision and are having a think about their next move.

Since they seem to have no real inclination to be a landlord, I'd agree with RSP that their best bet is probably to sell the property for £40K (if they can) and put the loss down as a learning experience.

QrizB

Curiously enough, student lets (PBSA) get a mention on pages 11-14 (ish) of this thread that's mostly about Dolphin Capital and German Property Group, the defunct Ponzi scheme.

https://forums.moneysavingexpert.com/discussion/4547063/sipp-investment-in-property/p11

The TLDR version is "if the guaranteed returns are so good, why haven't the developers borrowed the money commercially and then trousered the profits themselves?" which was doubly true when all this kicked off and interest rates were 3% or.less.

Albermarle

QrizB said:

Asimovs_nightfall said:

lfc321 said:

There have been big declines in student numbers (especially international
student numbers) at many universities over the last couple of years. It’s not a surprise that the demand for (and therefore value of) student properties has reduced, unfortunately. 

Demand for student accommodation is not falling, it's increasing.

What's your source for that?

The number of students has plateaued and fell slightly last academic year. It's odd that the demand for accommodation is forecast to increase.

https://www.hesa.ac.uk/news/20-03-2025/sb271-higher-education-student-statistics/numbers

I live near a Uni that has a high % of foreign students . I have no idea if their numbers are falling or increasing.
However there has been a building boom in the area of student accommodation. As far as I can see one driver behind this, is that more students ( especially ones from wealthier families here and abroad) are demanding high quality accommodation, such as one bed studio flats, or at least somewhere modern and not some grotty shared houses ( although there still plenty of them around) .
So the overall demand for a place to stay has maybe not changed much, but there is still plenty of new building happening due to the need to upgrade the quality of accommodation that will attract the students with more money.