© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
As the university year draws to a close, the next generation of students - and their parents - can benefit from investing in student property. Dedicated student halls of residence are permitted in Self-Invested Personal Pensions, SIPPs.
The average student debt rose to £12,640 in 2005, according to Natwest, and looks set to continue. Parents who are in a position to help their children financially are also feeling the strain of student rents, which have risen by 10% annually for three years.
By purchasing purpose built student flats, parents can not only reduce the burden of debt for their children, but also invest in their own future, enjoying a healthy rental income long after their child has finished studying. Dedicated student apartments within halls of residence can be purchased through a SIPP, one of the only residential property-related opportunities left open by the Chancellor. This means parents can benefit from full UK tax relief on the purchase of the apartments, before going on to collect rental income tax-free in the pension fund. If the syndicate agrees to sell the property, any profits made from the sale will also be free from UK capital gains tax.
Stuart Law, Managing Director of Assetz, which is selling various student schemes, said: “With more overseas students choosing to study in the UK, Government initiatives to increase full-time further education numbers and new licensing to reduce the number of traditional ‘digs’ available, the recent rises in student rents look set to continue.”