Top 10 areas for student buy-to-let investments

 In Property

A new study has shed light on the most profitable locations for student buy-to-let property investment.

A dynamic student buy-to-let market relies on two decisive factors:

  • Low house prices
  • High student demand

The study undertaken by Property Partner considers both factors and has turned up some unexpected results. Here’s a look at the top 10:

University Median rent pcm Gross annual rent Average house price Average gross annual yield % Average net annual yield %
Sunderland £575 £6,900 £65,201 10.6 6.9
Teesside £425 £5,100 £56,272 9.1 5.9
Aston + Birmingham City £676 £8,112 £116,732 6.9 4.5
Salford £750 £9,000 £131,863 6.8 4.4
Edinburgh £1,101 £13,212 £197,010 6.7 4.4
Manchester Metropolitan £895 £10,740 £160,315 6.7 4.4
Manchester £750 £9,000 £135,174 6.7 4.3
Newcastle + Northumbria £823 £9,876 £150,609 6.6 4.3
Nottingham + Nottingham Trent £794 £9,528 £151,535 6.3 4.1
Coventry £901 £10,812 £179,412 6 3.9

*Table courtesy of ThisIsMoney

Perhaps unsurprisingly, London-based universities failed to score highly. In fact, six of the worst universities for student buy-to-let investment were found to be in the capital. Coming last was Imperial College (based in Kensington and Chelsea), with yields as low as 1.3%.

Despite such healthy yields higher up the rankings, student buy-to-let property investment is far from an easy option especially in today’s market. Both Brexit and governmental pressure will continue to play a strong role in guiding the market for the near future.

Call on the experts at 3 Wise Bears for more handy student buy-to-let accountancy advice.

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