University towns 'are good opportunity for landlords'

Published by Daniel Jones

Landlords looking to add to their property portfolios and other investors who are looking to take their first steps in the industry have been advised to look towards university towns outside London as the ideal places to expand their reach.

This is Money has published a piece that recommended locations with high student populations - other than the capital - can be good places to build a selection of rental properties. It noted that lending to landlords is now at a five-year high point, with rates below three per cent making it a great time to buy.

However, with many landlords making property acquisitions at the current time, those looking to ensure a steady supply of tenants will have to look towards the right towns and cities.

Sophie Chick, an analyst at Savills estate agency, said: "While the potential for long-term capital growth is greater in London, you may get a similar monthly income from rent on a much cheaper property outside the capital. Landlords generally find the best returns in urban areas with a concentration of students or young professionals."

London may be seen as a hub of property investment and somewhere that will guarantee great returns, but its yield is said by This is Money to typically amount to 5.7 per cent. In comparison, the average yield across the country is 6.2 per cent.

Savills added that the five largest rental markets in the UK - excluding London - are Manchester, Liverpool, Bristol, Birmingham and Leeds. This provides potential landlords with a few pointers on where they might be wise to divert their investment capital over the coming months.

Conditions are favourable to landlords at the moment, so getting money together to invest in a rental property is a desirable move.

Alexander Gosling at housesimple.co.uk suggested that buying a multiple-bedroom abode in an area that is close to a university is a particularly good idea, while popular student areas will also provide opportunities.ADNFCR-1645-ID-801626897-ADNFCR


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Published on: August 19, 2013

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