x
By using this website, you agree to our use of cookies to enhance your experience.
STAY CONNECTED!
    
newsletter-button
CORONAVIRUS UPDATE

See the latest Coronavirus statistics from across the world on our world map SEE MAP UK Confirmed cases: 285,268 | UK Deaths: 44,080 SEE MAP Italy Confirmed cases: 240,961 | Italy Deaths: 34,818 | Italy Recovered: 191,083 SEE MAP Spain Confirmed cases: 250,103 | Spain Deaths: 28,368 | Spain Recovered: 150,376 SEE MAP See the latest Coronavirus statistics from across the world on our world map SEE MAP UK Confirmed cases: 285,268 | UK Deaths: 44,080 SEE MAP Italy Confirmed cases: 240,961 | Italy Deaths: 34,818 | Italy Recovered: 191,083 SEE MAP Spain Confirmed cases: 250,103 | Spain Deaths: 28,368 | Spain Recovered: 150,376 SEE MAP

TODAY'S OTHER NEWS

Top universities for buy-to-let revealed

Landlords can earn attractive returns when buying property near a university, but only if they are shrewd about where they purchase, according to new research.

A combination of cheap property prices and high demand for rental accommodation in student cities in the north of England means some landlords are earning double-digit returns annually, although this latest study by StudentTenant.com suggests that the average rental yield in the student buy-to-let market across the UK is significantly lower.

As any savvy buy-to-let investor will know, the level of return will depend in the type of property and the location it is located in, with Durham identified as offering the best buy-to-let returns out of the top 10 ranking universities, followed by Warwick and Loughboroug.

Landlords buying property near Durham University, which ranked 6th in this year’s University League Table, can expect rental yields of 5.22%, while Warwick and Loughborough offer average rental returns of 5.11% and 5%, respectively.

At the other end of the scale, London is the worst performing location for buy-to-let student landlords, with all three of the top 10 ranking universities offering the lowest rental yields.

Landlords in the capital can expect rental yields of 3.46%, and with property prices amongst the highest in the UK, student property investment is far more risky.

Danielle Cullen, managing director at StudentTenant.com, said: “For anyone looking to invest in a student property, it’s always advised to assess the potential rental yields in the area to see if it’s a sound investment. However, I must stress that rental yields aren’t everything and there are many things to consider before purchasing a student rental property. 

“Is the property located near the university? Does the property have parking spaces? What is the current condition of the property? It’s important to collect as much information before taking the plunge, to ensure you get the best possible deal.

“Looking just at rental yields for the top ten ranking universities, it might seem attractive to invest in a student property in an area like Warwick or Loughborough where yields are around 5%. However, when you account for the higher property prices, it might not be the best option available for investors.

“Durham could well be an up and coming investment location for the student sector. It’s typically not what I would consider a ‘hotspot’ for private landlords looking to increase their portfolio, but could well be one to watch.” 

Table of The Top 10 Performing Universities, including: Total Student Population, Average Four Bedroom Property Prices, and Average Rental Yields.

Rental Yield Rank

Location

University

League Table Rank

Student Population

Avg. Property Price

Avg. Rental Yield

1

Durham

Durham University

6

17,927

£151,465

5.22%

2

Warwick

University of Warwick

8

25,615

£338,220

5.11%

3

Loughborough

Loughborough University

10

16,500

£237,005

4.93%

4

Fife

University of St Andrews

3

8,790

£158,113

4.60%

5

Lancaster

Lancaster University

9

13,336

£148,268

4.46%

6

Oxford

University of Oxford

2

22,602

£497,603

4.12%

7

Cambridge

University of Cambridge

1

19,672

£465,588

3.64%

8

London

Imperial College London

5

14,700+

£717,217

4.53%

9

London

London School of Economics

4

8,895

£1,125,671

3.46%

10

London

University College London

7

38,000+

£1,125,671

3.46%

icon

Please login to comment

Zero Deposit Zero Deposit Zero Deposit
sign up