Student property is one of the best investments available at the moment, thanks to high demand for student housing ahead of the new academic year.
Many buy-to-let landlords are reluctant to rent to students because they are concerned about the damage they could do to their property. But research reveals that student property now offer among the highest yields in the UK.
Landlords with student properties in Liverpool, for example, which is home to three universities, can now expect to achieve rental yields of almost 12%, according to recent research by Totally Money.
Middlesbrough’s TS1 town centre postcode, home to Teeside University, is another good location for student property, with an average rental yield of almost 11% typically achievable.
The research unsurprisingly finds that most postcodes in the highest yielding areas have relatively low house prices, compared to the national average, suggesting that more affordable house prices generate better rental yields rather than more costly properties.
Jeremy Robinson, managing director of Housing Hand, commented: “Landlords and letting agents that let to UK and international students know they are getting some of the best yields in the country.”
He points out that new students often opt for halls or an HMO, which he adds “offers excellent yields for landlords”.
TOP TEN BUY-TO-LET POSTCODES FOR RENTAL RETURNS
|
Rank
|
Postcode
|
Postcode Town
|
Properties for Rent
|
Average Monthly Rental Value
|
Properties for Sale
|
Average Asking Price
|
Yield
|
1
|
L7
|
Liverpool
|
276
|
£1,162
|
64
|
£118,225
|
11.79%
|
2
|
L6
|
Liverpool
|
287
|
£1,046
|
131
|
£108,940
|
11.52%
|
3
|
TS1
|
Middlesbrough
|
234
|
£595
|
102
|
£65,238
|
10.94%
|
4
|
EH8
|
Edinburgh
|
52
|
£1,962
|
33
|
£221,640
|
10.62%
|
5
|
M14
|
Manchester
|
787
|
£1,636
|
72
|
£194,733
|
10.08%
|
6
|
NE6
|
Newcastle upon Tyne
|
883
|
£883
|
237
|
£111,767
|
9.48%
|
7
|
L1
|
Liverpool
|
217
|
£953
|
411
|
£122,152
|
9.36%
|
8
|
PR1
|
Preston
|
675
|
£903
|
586
|
£125,341
|
8.65%
|
9
|
M19
|
Manchester
|
75
|
£1,331
|
67
|
£185,645
|
8.60%
|
10
|
FY8
|
Blackpool
|
80
|
£1,490
|
252
|
£209,556
|
8.53%
|
|
Source: TotallyMoney June 2018
|
|
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