Northern cities 'are better for student landlords'

Published by Daniel Jones

Investing in student accommodation is a good way for landlords to make a healthy profit, but the key is and always has been to buy in the right locations.

The argument over where is best for student housing to rent out has raged for many years and now it seems a definitive answer has been found. Property website Zoopla has carried out a study and concluded Glasgow offers the greatest yield anywhere in the UK.

With a typical four-bedroom house in the Scottish city costing £262,888 and the average monthly rent coming in at £1,083, its yield of 4.95 per cent beats every other destination included in the survey.

Hull, with a gross yield of 4.8 per cent, and Manchester (4.59 per cent) were second and third respectively, indicating the north offers the best opportunities to landlords looking to add to their portfolios.

Lawrence Hall of Zoopla said: "The largest number of students or most prestigious university clearly isn't necessarily best for investment returns. Landlords need to do their research and take into account the student demand, property supply, average property values and average monthly rents."

He went on to suggest there is certainly no north-south divide when it comes to buying student houses to rent out, as a number of towns and cities in the north are performing more favourably than their southern counterparts.

Zoopla also revealed statistics that highlighted the worst places to buy-to-let to the student market. It named Carlisle as the least profitable option with a gross yield of just 2.58 per cent, with the Cumbrian town followed by Middlesbrough, Bournemouth, Guildford and Stoke-on-Trent.

These should be avoided by anyone looking to make a healthy return on their investment in student properties.

One of the major benefits associated with student rental property is that demand is so strong and resilient, with a new wave of young academics turning up each September with a need to pay out for somewhere to live.ADNFCR-1645-ID-801642655-ADNFCR

 


Published on: September 26, 2013

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