Top 10 areas for student buy-to-let investments
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.