Property News > Research reveals which UK university towns and cities come out on top for student buy to let

Research reveals which UK university towns and cities come out on top for student buy to let

Forget the degree, one of the main things you remember about university is the student house you made many, many memories in. But what are the best towns and cities for student buy to let housing? St Andrews comes out on top in regards to offering yields to landlords with the potential of achieving up to 12% per year.Often, students don’t have the best reputations as tenants, most likely down to their untidiness, carefree attitudes and drinking culture, however, new research has revealed that letting to students can offer good returns. And it is not necessarily the top performing higher education locations, Oxbridge both appear at the top of university rankings but fail to offer the best yields for landlords.After St Andrews comes Lancaster, Loughborough and Birmingham with the ability to achieve 10% per annum, followed by Exeter, Durham, Sussex and Nottingham with 9.5%. Largo Road in St Andrews where reasonably large houses cost an average of £300,000 and five students paying £150 a week each has the potential to earn a collective £36,000 a year in rent for a landlord.However, Oxford offers the lowest value of the universities included in the search. Properties in popular student area Iffley Road go for around £720,000 and could net a yield of around 3.3%, equating to £2,000 a month. Hence, the high initial outlay appears steep with less than attractive returns. Elsewhere, the University of East Anglia, as well as those Cambridge, Bristol and Surrey all find themselves at the bottom of the table.For landlords looking to acquaint themselves with the student market, the best way to mitigate the risk to invest in an area they know is best for students. Nowadays, more and more people with children at university are choosing to invest and buy a property rather than seeing rent going down the drain.The real key in renting to students is to ensure that you possess the correct insurance. Look into the likes of accidental and malicious damage cover and make sure you attend the property regularly for inspections as this will help to ensure that small issues do not grow and spiral out of control.One landlord followed the student route as both her son and daughter both choose to study medicine at university (a course that takes five years), thus she and her husband decided to buy houses which they could use and retrieve income for sharing with other students. Not only does this allow the landlords to provide a safe property for their children and their housemates but it also means that they care more about them as tenants than anonymous investor would have.It also allows them to kill two birds with one stone so to speak as they can give themselves a leg up on the property ladder. Buy to let mortgages whilst your children are at university at a viable option for parents, plus it means your child’s rent is contributing to the mortgage, thus you’ll benefit twice over.

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