“One of the safest buy to let investment bets” un...

Rental homes near universities command an average yield 1.3 per cent higher than those in the wider area, a survey claims to show.

If true, this would on average increase a landlord’s expected annual income by almost £6,000.

The research, by the Stripe Property Group, shows that across Britain, a rental property located close to a university commands an average yield of 5.2 per cent.

Meanwhile, those rental properties that aren’t university- adjacent command an average yield of just 3.9 per cent.

This means that investing in a buy-to-let within close proximity to university can boost rental returns by 1.3 per cent.

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 that the best university yield boosts are found in the North East where expected yield is 6.5 per cent for a property close to a university compared to 4.5 per cent elsewhere.

Stripe managing director James Forrester says: “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 is managed helps to ensure 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.”

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Grumpy Doug
21 September 2022 11:02 AM

Agreed. I'm 100% student lets in sunny Bournemouth so am reviewing all options at the moment. My neighbour also owns a couple of houses. They were student houses but he took them out of the student market last year, spent some serious money on getting them really nice and now is Airbnb. I may try it with a couple of mine if the "reforms" come to pass