Sheffield is the next option for Esper Wealth. Sales director, Robert Herring explains, “Last year Sheffield was the only city in the UK where the average property sold for more than its asking price.”
Recently £480 million was spent on developing Sheffields shopping district, Sheffields local authority continues to create the amenities to deal with rising demand. This has directly impacted central postcodes such as S1 where yields have hit around 7%. This postcode represents good investment value.
Esper Wealth has partnered up with one of the leading developers in Sheffield, which is building an exciting purpose-built student accommodation next to Sheffield Haram university.
Herring explains, “purpose-built student accommodation (PBSA) offers great benefits to the investor. You get a high-yield, hands-free investment, which is tax efficient.”
Unlike residential buy-to-let property, there is no stamp duty surcharge as it is classified as commercial property. This type of investment is very popular with investors at retirement who are looking for an extra income. Herring continues, “the development will comprise 234 student apartments set over 14 floors.”
It has been recently reported that PBSA has very high occupancy levels and this only adds to the allure from an investment perspective.
“Since the current rule changes to mortgage tax interest rate relief and stamp duty we have noticed a surge in demand for this type of investment from our clients. With over 60,000 students currently studying in Sheffield, this development has very good financial sense, and we are delighted to add it to our portfolio.”