The Mill, Lancaster
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The Mill, Lancaster
Welcome to The Mill, a development of 107 deluxe studio apartments set in the heart of Lancaster’s thriving student community.
A refurbished Victorian mill, the property combines all the amenities of modern student living with the rustic charm of Lancaster’s industrial history.
Invest from £85,000 with staged payments and benefit from a contractual guarantee of 8% net for 5 years on completion. This is a truly high-spec, in-demand student development located in close proximity to a top 10 UK university.
Why Invest In Student Property?
For savvy investors that are looking to acquire income-generating assets underpinned by a stable supply of tenants, student accommodation can be a great choice. The fully managed structure, lack of stamp duty land tax and fixed rental assurances offered by property developers makes the investment proposition incredibly attractive for those looking at a hands-off strategy, most new-build student developments completely sell out during the construction period.
With the entry level of student accommodation typically being below £125,000, it means in most cases investors do not have to pay Stamp Duty Land Tax.
Student accommodation developments are very popular and as mentioned, typically sell out in advance of completion. The main reason is because developers offer long term fixed rental periods giving the buyers certainty that the cash flow will be both secure and lucrative. In some cases, investors can earn up to 8-10% as a net yield for periods up to 5 years. This means investors have peace of mind knowing they can forecast exactly what their return will be during this period and will have it paid directly into their nominated bank account, making a passive and profitable return.
Student developers will normally appoint a dedicated student accommodation management company to effectively run the entire site. This includes the sales process of letting the properties, managing the entire tenant lifecycle and maintaining both the apartments and communal areas of the building so there will be no time-consuming phone calls or headaches for the investor.
You will find that in most university cities across the UK there is a critical shortage of student accommodation, this is driven by 4 of the world’s top 10 educational institutions being based in the UK (Cushman & Wakefield). Many universities have just a couple of thousand dedicated halls of residence rooms, with the remaining students having to go into the residential market, mostly house-shares. However, modern students, often from overseas want secure, quality accommodation which is convenient in terms of location and the inclusive rental package, this is exactly what dedicated student developments offer.
Prime locations, social areas, meeting rooms, gyms, cinema rooms, rooftop terraces, cafes, bars and often a dedicated social program mean that many of these student developments provide a luxury living experience. With parents regularly being a big part of the decision-making process (and often paying for it) features such as onsite 24/7 security, approachable site management teams, secure key card systems and an efficient maintenance service means the parents favour these dedicated student projects. From an investor’s perspective, having a quality product in comparison to market alternatives will bring in the rental income and enable a higher rental price in the long term.
Market Data & Analysis
Lancaster is home to over 18,000 students and hosts two higher education institutions: Lancaster University and The University of Cumbria’s Lancaster campus. Lancaster University is among the best the UK has to offer.
Consistently ranking in the top 10 of all three major national league tables, the institution is also within the top 13% of universities globally. In addition, Lancaster sits 3rd for graduate-level employment in the Times and Sunday Times’s Good University Guide 2019. As a result, it’s an extremely popular destination, attracting 12,960 students from 142 countries during 2017/18. And, it’s growing. The student population has increased at a rate of
16% per annum since 2008/09 – well above the national average of 12%
Few, if any, student lodgings in Lancaster can offer The Mill’s location. Just a stone’s throw from Lancaster University’s main campus, the property combines convenience with stunning countryside.
And, with the university’s sports centre and local bars just a 10-minute walk away, all the trappings of student living are on residents’ doorstep. There’s even a 4-star hotel nearby for visiting parents and relatives.
The property also boasts fantastic transport links, with a several bus routes to Lancaster city centre and the train station. Alternatively, both are within a short car journey.
Frequently Asked Questions
Below you can find a range of common questions from previous investors. If you require specific details and advice please do not hesitate to contact us today on +44(0)203 627 3987 or via [email protected]
The rental assurance offered by developers provides investors a level of security rarely seen in the residential market. They will commit to investors receiving the fixed figure irrespective of the performance of the asset, so even if the unit is unoccupied you will still receive the fixed rental income.
There will be a dedicated management company appointed who are experts in the local market, often student property specialists. They will have a network of tenants and relationships with universities to ensure optimum performance, so your property will be in safe hands with them taking care of the entire process of lettings and management.
Not much will change, you will still have someone looking after your property, although you are free to choose another management company. Your rent will be collected on your behalf and then it will work like a normal buy-to-let property with costs to consider. In most cases, due to the premium rent charged and low pricing, the net returns are very attractive.
During the purchase stage you will have to consider legal fees but typically there is no administration, furniture pack or other charges due. Once the property is complete, you will earn your net fixed income without having to consider other costs for the duration of the rental assurance period.
This type of investment property is a cash only purchase, most high street lenders do not provide finance for such purchases with the units often being below 30m2.
On some student schemes there are payment plans provided throughout the construction period. In most cases a minimum of a 30% deposit will be due at the exchange of contracts stage.
Selling your student property is very simple, we can assist with recommended companies to market your property for sale, or you can use a traditional high street agent. The market is more niche compared to traditional residential property as you will be focusing on investor buyers but there tends to be significant demand for properties that perform well in terms of the net income and that have a track record of high occupancy rates and rents being achieved.
What does Nick, our Founder and Director, think of The Mill?
“The Mill is a conversion which retains a lot of the original character and history of the building with a modern twist.
It’s really nice to see spacious student apartments with an attractive return.
A lovely finish and larger than average studio apartments will attract students attending this leading UK institution, which is ranked in the top 10 of the UK in the three major league tables“.
Nick Hyland, Director
"Effectively advised me on a range of different investment products always with great professionalism"
"Professional, concise and on point. I would highly recommend"
"A very professional service from enquiry to completion."
Our role is to advise, educate and present the most suitable property opportunities to investors. If you would like to discuss your options with the team you can call us on +44(0)203 627 3987, email us on [email protected] or send us a message below.
Track Capital is designed to help new and experienced property investors navigate the market by providing unique investments, free of charge.
Company No: 11053957. TPO Membership: T02475. Track Capital is not authorised or regulated by the Financial Conduct Authority, we recommend investors seek advice from a qualified professional. Images are for marketing purposes/illustration only.