Ryan Etchells, chief commercial officer at Together commented: “Student accommodation can offer strong rental yields, reliable demand, and in some cases, less day-to-day hassle than traditional lets. Whether you're after a hands-off income stream or don't mind rolling up your sleeves, there's a student property strategy to suit your style. Just make sure you do your research, understand the local market, plan ahead for the rules and costs involved and speak to a lender who can support your ambitions.”
Below, Etchells shares his top tips for buy-to-let landlords considering getting involved with student accommodation this year onwards:
1. Steady demand if the right place is picked
With more students going to university every year, there's no shortage of young people looking for accommodation. However, location is key for landlords to succeed. If the local market is oversaturated or if university enrolment drops, you could struggle to fill rooms. Stick to cities with growing student numbers and limited on-campus housing. For example, our latest report ‘Cities in focus 2025: Commercial property insights’ revealed Birmingham, Manchester and Glasgow as cities where there is a growing appetite for student housing in particular.
2. Purpose-built vs House in Multiple Occupation (HMO)
Students at UK universities often move out of on-campus halls and into their second and third year houses or flats in the local area. It is key for landlords to know the two main types of private student housing and the differences and benefits of these for landlords. Modern, purpose-built student blocks are often managed by professional companies, meaning you don’t have to chase rent or fix the boiler at midnight. Rents can also be higher due to added features like gyms, Wi-Fi, and all-inclusive bills. But landlords must remember that the service charges and maintenance costs can be steep, and the value of these flats doesn’t always grow over time. Ask for a breakdown of all fees and check the actual income after expenses, not just the headline rent.
The other option for landlords is renting out individual rooms in a house - a student HMO - which often brings in more rent than letting the whole place to one family. This is great for boosting income if you’re hands-on. You’ll need to deal with licenses, fire safety rules, damp checks, and sometimes fussy tenants. Student lets can also create more wear-and-tear than average so be ready for more management time or alternatively hire an experienced letting agent to handle the heavy lifting.
3. Stay ahead of rule changes
The Renters’ Rights Bill has been delayed until Autumn, however landlords must be aware that scrapping fixed-term tenancies in England is part of this. Proposals are advancing to replace this with a single system of open-ended, periodic tenancies which could make student lets trickier to manage especially as students usually want contracts that match the academic year. However, it is important to note that purpose-built student blocks may be exempt from this. Keep an eye on legislation to keep ahead of potential changes this Autumn.
4. Financing student housing lets
With some lenders it can be difficult to get approved for funding on student rental property. One of the most common reasons is that the type of building being purchased doesn’t meet the lender’s criteria as it may be built using non-standard materials, could need extensive renovation, or could be part of a semi-commercial property i.e. a flat above a takeaway or shop.
Some high street lenders will shy away from student lets, but specialist providers like Together offer mortgages specifically for this kind of investment - whether it’s a converted house or a modern student block. But it doesn’t always need to be the case as specialist lenders provide a range of flexible finance options that can work in many of these scenarios and understand that the student housing market can be a lucrative opportunity for landlords looking for higher yields.
