London is constantly ranked among the top student cities in the world, attracting young learners from around the world. In addition to several top-ranked universities, the UK capital also offers strong employment opportunities, world-class infrastructure and a multicultural ecosystem to grow and succeed. With thousands of international students coming to pursue a London degree each year, many parents looking to secure a comfortable stay for their children and also diversify their investment portfolio, choose to buy a property.
While there are many options to rent a property, including several purpose-built student accommodations (PBSA) in London, the benefits of buying a property for your child’s education are worth taking note of.
Why parents invest in UK property for their children’s education

While the primary reason to buy a London or UK property for most overseas buyers with kids studying here is to ensure a safe and comfortable home, there are many other monetary advantages of owning a property. From earning a rental income to offsetting mortgage payments, and finally holding for long enough before selling off an asset for a definite profit, overseas parents benefit from the robust performance of the property markets in the UK.
Should I buy or rent a property in London for my child?
Whether you choose to rent or buy will depend entirely on your goals and budget. However, consider the cost involved for both before making any decision. Average rents in London vary considerably; therefore, even if you calculate the average rent at the lower end of around £200 per week, the total rent for an academic year, which spans around 40 weeks, is £8,000. For a three-year course, the accommodation cost would work out to over £25,000 after factoring in annual rent inflation.
In comparison, the average monthly mortgage payment for a house in the UK, according to Finder, is £1,253. Although renting is more affordable than buying in the short term, it is still an expense and not an investment. Remember, your child needs to vacate a student or rental accommodation at the end of their degree, while a home will always remain, while they look to land internships and jobs that build their careers.
Popular London areas near top universities

Many of the UK capital’s top university campuses, such as Imperial College London (ICL), University College London (UCL), King’s College, LSE and City University, are located within the inner or central London districts where property prices are generally higher than the London average.
However, at Benham and Reeves, we work with top developers who leverage the city’s unparalleled transport infrastructure to provide new homes conveniently located near the Tube, Rail and Elizabeth Line stations for ease of commute. Check out homes near some of London’s top universities.
What type of property is best for students in London?
While many student accommodations offer state-of-the-art facilities for a premium, it is still a rental and will not provide the sense of ownership or security that your own home does. Especially if your child is looking to find a job or settle down in London after completing their education, buying a property outright makes sense. Even if your child decides to return or move to any other country, a London property offers profit potential, as you can rent it out privately to students, professionals or families, depending on its size and location.
Financial and legal considerations for international buyers

Buying a London property for your child also comes with certain financial and legal obligations. While you may need to put down a deposit of between 10% and 15% for a mortgage, there are also additional costs such as legal and conveyance fees, stamp duty, and furnishing that you need to factor in. However, the long-term peace of mind and returns that come with property ownership can far exceed the short-term affordability and convenience associated with renting a property for your child.
How we help overseas parents invest in London property
At Benham and Reeves, our 21 London sales and lettings branches can help you find the right property, close to your child’s university and also help with a range of property management and furnishing solutions for comfortable living and maximising rental yield down the line. We also work with corporates to ensure your property stays occupied and generates rental income after your child graduates from university.
We have helped thousands of international investors looking to make the most of London’s thriving property markets, and you can read our detailed overseas investment guides for more insights. You can also contact us to discuss your property requirements and learn more about investing in London.