x
By using this website, you agree to our use of cookies to enhance your experience.

TODAY'S OTHER NEWS

Renting to students provide ‘some of the best yields in the country’

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.

Advertisement

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

 

 

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.

icon

Please login to comment

MovePal MovePal MovePal
sign up