The Stripe Property Group, a housebuilder, claims rental homes near universities command an average yield 1.3 per cent higher than those in the wider area.

It says this is increasing the landlord’s expected annual income by almost £6,000. 

Stripe analysed the average yield available surrounding a university, comparing it to the yield generally expected. 

The research shows a rental property close to a university commands an average yield of 5.2 per cent while those not university-adjacent command an average yield of 3.9 per cent.

A breakdown of the home nations reveals that, in Wales, university yields are 1.4 per cent higher; in England they’re 1.2 per cent higher, and in Scotland, they’re 0.7 per cent higher. 

A regional analysis reveals the best university yield boosts are in the North East where a property near a university costs an average £185,000 a £27,076 more expensive that the overall regional average of £157,924. The expected yield, however, is 6.5 per cent for a property close to a university compared to 4.5 per cent elsewhere.

The only region where close proximity to universities does not result in higher yields is London.

Managing Director of Stripe Property Group, James Forrester, comments: “Investing in buy to let properties near universities is one of the safest bets available on the property market. 

“A consistent stream of tenants in need of quality accommodation means that void periods can be reduced considerably, provided that, as a landlord, you cultivate a good reputation among your tenants. In the case of purpose built student accommodation, it’s also fair to say that the quality of your investment is not only vastly superior, but the fact it’s managed ensures it stays this way for far longer. 

“Perhaps more so than any other demographic, students value convenience and location over almost anything else – getting to and from lectures in five minutes compared to an hour makes a world of difference to students and they’re often willing to pay a premium for that convenience. 

“And it’s worth remembering that there are many different types of students populating modern universities. You’ve got the classic school leavers, of course, but you’ve also got a potential audience of overseas students and mature students. When considering how to present and market your properties, it’s worth bearing in mind what makes each of these groups tick. If you get it right, university locations provide brilliant, reliable returns every single year.”