Why buy instead of rent in London (for university students)

Every year, an increasing number of discerning Thai investors explore lucrative, stable overseas property options as part of their long-term diversification strategy. Among the options on the table, London consistently draws the sharpest interest. The one factor that stands out above yields, exchange rates or market cycles is student demand.

This is because long before investors view London as a world financial centre, this city is considered a powerful magnet for overseas students. This appeal drives one of the most consistent, high-value rental markets in the world. This is also why buying instead of renting in London, especially when a family member is studying there, makes sense.

The scale of student demand in London

In the 2023/24 academic cycle, the UK hosted 732,285 overseas students, with nearly one in every student enrolled in higher education. Despite ups and downs, the UK stands firmly as the second most popular study destination in the world, only after the USA.

A more telling signal for discerning, long-term property investors in London would be that in the 12 months ending June 2025, more than 35,000 foreign students extended their stay to continue studying or move onto a sponsored study route.

This data clearly is a clear indication of how most students don't just come to London to merely study. They stay, rent and work, shaping one of the most underrated pillars of the London rental market.

Why this information matters to investors

London’s international student base is not driven by short-term hype or any political cycles.

It is backed by deep-rooted advantages such as:

• The highest concentration of QS-ranked universities in one city, globally recognised faculties, courses structured in finance, technology, engineering, design and healthcare.
• These offerings create predictable and steady demand, lead to longer rental periods and swift conversion from student tenants to young professionals.
• This is also one of the reasons why our Thai clients who first bought for university use ended up holding those same properties for years beyond.
• The reality is, occupancy rates for rental properties in London never stop.

The actual cost of short-term renting

We all know that London rent is not a minor monthly payout. It is a high, consistent and irreversible cost. For instance, as per current rates, a standard one-bed near UCL, Imperial or King’s can cost £350–£550 per week. Centrally located units can touch £600+ in addition to utilities, council tax and furnishings.

Over the course of a standard three-year course, many families end up spending an amount equal to the deposit of a high-quality London apartment.

The unfortunate reality is that this money simply evaporates as there is no equity, appreciation or asset to pass on. This is why many Thai investors often reach the same conclusion: if they are already funding London rent, it might as well make sense for that cash to be used to build something tangible.

Ownership often turns unavoidable costs into a London asset, a Sterling-denominated wealth anchor and a rental instrument that continues producing income long after graduation.

• When the student is expected to stay in London for more than two years
• When the university is near a major Zone 1, 2 or 3 transport hub
• The intention is to rent post-graduation or when
• The family’s seeking sterling exposure.

In such cases, buying a property in the capital city is not an extravagant choice but an efficient one.

Benham & Reeves Thailand’s role

Our Bangkok office can assist savvy Thai investors with property identification, university-adjacent lettings data, yield performance studies and LRS guidance, along with banking paperwork.

Once the purchase is complete, the London office will take over tenant sourcing, rent collection, deposit registration, safety and compliance and maintenance oversight, complete with full property management. This way, regardless of your location, you can buy a property of your choice in the capital city seamlessly.

Lastly, why buy instead of rent?

Because student demand in London is not dying anytime soon. It is sustained, measured and replenished year on year.

Renting can solve your housing problem for a mere three years, but buying solves housing issues as well as creates a stable asset in one of the world’s most trusted markets.

University locations in London are not isolated neighbourhoods. They sit in areas that are home to global finance, media, design, engineering and research talent pipelines.

And lastly, when your child graduates, this London property won't need any repositioning.

Speak to our team for detailed guidance

If you’d like to explore this investment strategy further, connect with the Benham & Reeves Thai team. Whether you are evaluating your first purchase, comparing rental costs or would like to get clarity on future income from a post-study tenancy, we can help.