Why Invest in a Studio Apartment?

Living in a studio flat in the UK, particularly within the city centre, is the perfect option for young people who have just moved to a new city and want an affordable, comfortable, and well-located place to live.

With student tenants, studio flats provide a level of privacy that they might not get from shared student accommodation such as a student house.

Research shows that students in the UK are becoming more interested in renting self-contained student accommodation, and studios are the perfect mixture of independent city life and affordability.

For many, living alone is no longer seen as a negative thing, and many young professionals embrace having their own space when searching for apartments to rent.

For people living solo, studio-type apartments and micro-apartments in the UK are far more convenient and comfortable than a larger house or flat. However, even 1-bedroom apartments can be too large for someone living alone.

Studio apartments are more affordable than one or two-bedroom flats, both for the investor and the person living in a studio flat in the UK.

This is because they’re smaller than most other apartments, with sizes typically ranging from around 400-500 sq ft.

However, while the purchase costs and rental costs for a studio-type apartment may be lower than the average cost of a one-bedroom flat, this doesn’t mean that small studio apartments can’t still generate some attractive rental returns.

For those who aren’t familiar with rental yields, they’re a percentage figure calculated by taking the purchase price of a property and its rental income.

The higher your rental yield, the better the return on investment you can expect. Since studio flats still have high rental costs depending on the area and the apartment itself, rental returns are potentially very attractive with studio flat investments.

Take our latest student investment opportunity, Shaw Street. These city-centre-based studio apartments are priced from just £69,995 and offer huge 8% rental yields.

Rents in the UK are predicted to rise over the coming years, having experienced huge growth over the last five years. In the North West region alone, rental prices have increased by an average of 15.2% since 2016.

Consequently, investors have seen growth in rental rates and capital appreciation, with a growing market for studios.

When buying a studio apartment as an investment, there are many things you should look for before you go ahead with the purchase. Here are five steps that you should keep in mind before investing in a studio apartment.

1. Understand the Basics

What is a studio flat? What is a studio room plan like? And why invest in a studio apartment when you could buy a one or two-bedroom flat?

If you don’t understand all of the basics of studio apartments, you’re limiting your success.

Before you think about buying a studio flat, make sure you know everything there is to know about investing in a studio flat, meaning what studios look like, what makes them different from an apartment, and their benefits.

2. Search for Studios in the Best Locations

Make sure you’re looking to invest in a studio apartment in a desirable location, such as within the city centre, if you want to attract a young professional or student crowd.

Ensure that you’re able to generate a high level of capital growth from your studio apartment. This means investing in an area known to have a strong property market with high predictions for house price growth.

Buying a Liverpool studio flat is a perfect option for investors who want to generate high returns, attract a steady stream of demand, and boost their chances of capital growth.

Liverpool city centre is an area that sees a lot of demand from tenants. It’s perfect for those who want to rent a property near their workplace or university and don’t want to spend a lot of money.

Liverpool rental costs have risen over the years and are expected to continue growing, which is good news for property investors looking to maximise their rental income.

Studio apartments in Liverpool city centre are the ideal solution for cost-conscious tenants as they’re comfortable, affordable, and well-located.

The city also offers Manhattan studio apartments, which is the latest property market trend for tenants and investors.

Average rental yields in Liverpool exceed 5%, with certain postcodes capable of generating rental returns of up to 10%.

Many parts of Liverpool also see huge growth thanks to regeneration projects throughout the city centre.

Therefore, purchasing the residential or student studio flats, Liverpool has to offer is a smart investment decision for those focused on the capital appreciation and rental returns.

When searching for the perfect studio apartment, you need to pay attention to the space itself and make sure it’s well-designed, not too cramped, and practical.

So what is a studio flat supposed to look like exactly? Some of the main things you should pay attention to are space and layout.

While a studio apartment is typically defined as a smaller space than a one or two-bedroom flat, this doesn’t mean that a studio flat shouldn’t still offer a comfortable living experience.

Think about whether you would be happy to live in the studio flat you’re considering buying. If you wouldn’t, due to the space being too cramped, what makes you think your tenant would?

You should also make sure that the design and decor of the property are up to a high standard, as this will attract more tenant interest and mean you won’t have to worry about refurbishments.

When targeting specific tenant groups like students, it’s also a good idea to think about looking for studio flats with features such as a dedicated study area.

Looking to buy a studio apartment in the UK for your next investment purchase? We have a range of exciting investment opportunities currently available, with properties based in high-growth UK areas offering rental yields of up to 8%.

Shaw Street – Liverpool Student Studio Flats

Prices From £69,995 

Assured 8% Rental Yields 

Completed and Tenanted Property 

These completed and tenanted student flats based in Liverpool are a must for anyone considering a studio apartment investment. With prices from just £69,995 and rental yields of 8%, Shaw Street is one of our most in-demand studio investments right now.

While not technically a studio apartment, Shaw Street functions more as an en-suite flat where residents have their own private bedroom and bathroom but share a kitchen with other tenants. This is a popular style of student accommodation in the UK.

Ideally located in Liverpool city centre, Shaw Street provides the perfect location for students living in Liverpool to access everything the city offers while also being within walking distance to several university campuses.

ELEMENT – The Quarter

Prices From £74,950 

Assured 8% Rental Yields 

Off-Plan Investment  

ELEMENT – The Quarter is one of our most exciting investment opportunities of recent years. This development offers a mix of different unit types, including stylish studio apartments.

As the first eco-development in Liverpool, this property investment venture is unmissable if you’re looking for a one-of-a-kind buy to let studio flat. Technology like rainwater recycling and heat recycling systems, amongst other forward-thinking technologies, ensure this development is sustainable.

Amazing onsite facilities, including an onsite gym, games room, and a dedicated remote working area, ensure that studio flats in this property will see a lot of tenant demand.

With an unbeatable location right in the hustle and bustle of the thriving Liverpool Knowledge Quarter, and prices from just £74,950, this is an all-around fantastic investment opportunity for anyone looking for cheap studio flats for sale in the UK.