Many landlords purchase properties near universities in order to take advantage of the lucrative yields that the student rental market often has to offer, with a new league table compiled by Simple Landlords Insurance claiming that private rental accommodation near universities can generate yields up to 12% per annum, but which locations offer the best returns?
The study by the rental sector insurance specialist found that St Andrews in Scotland currently provides landlords with the best chance of achieving a rental return of up to 12%, followed by Lancaster, Loughborough and Birmingham which offer the potential to achieve a yield of at last 10%, while landlords buying property in Exeter, Durham, Sussex or Nottingham can expect to achieve a return of around 9.5%.
Meanwhile, with an average yield of just over 3%, Oxford offers the lowest value of the universities covered by the study, which effectively took the top universities in the country ranked by the Complete University Guide and examined which offered the best investment opportunity.
The University of East Anglia in Norwich, and Cambridge, Bristol and Surrey universities also featured towards the bottom of the table.
“While the academic league tables are always led by Cambridge and Oxford, our study shows that neither of those locations offers the strongest yield for a buy-to-let investor,” said Alex Huntley, head of operations at Simple Landlords Insurance.