Over the past two years there has been a huge surge in student housing investment activity in the United Kingdom, and student accommodation is certainly big business right now. Last year alone saw more than £2 billion of investment from U.K. and overseas investors in this booming property sector.

A new report from The Mistoria Group, specialists in student property investment, has highlighted that demand for student HMO property is especially soaring in the North West, with a 40% increase in students securing their accommodation in January, year on year. 

Despite the significant increase in purpose built student accommodation, there has also seen a 35% rise in students looking for HMO accommodation.

The firm’s research shows that students are looking for high quality, shared accommodation, with good internet access and affordable bills. A good location close to the campus is also important, and with all these criteria, properties are becoming harder to find. Rents are also up, with rises of between 5-10% in the last 2 years.

This comes at a time when the domestic student population is continuing to expand, with UCAS reporting that they are expecting an all-time high of 500,000 applications this year.

Dr Tim Havard, the UK head of professional services at Estate Master, says that “It seems to be pretty much of a no-brainer that North West Buy-To-Lets will see the greatest growth in 2015 and beyond”

Though in 2014 much of the early development was in London, Northern powerhouses like Manchester, Salford and Liverpool have outperformed all other cities in terms of rental yields over the last couple of years.

Mish Liyanage, CEO of The Mistoria Group advised "we welcome these findings and encourage all investors to invest now in the North West rather than wait till the market has appreciated to the 2007 levels. Key is to buy at the right time and the right area”