Student buy-to-let investments with the best rental yields in the UK
By |Published On: 18th August 2020|

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Student buy-to-let investments with the best rental yields in the UK

By |Published On: 18th August 2020|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

Online property management platform Howsy has looked at rental yields nearby the top 50 universities across the UK to determine which areas provide the best buy-to-let opportunities for landlords.

This research looked at the average house prices and average rent prices per month in the outcodes of the top 50 universities to calculate rental yields.

On average, university rental yields sit at 4.4% across the UK, according to the results.

The top three best results can all be found in Scotland. The University of Dundee (DD1) came first, with an average rental yield of 7.2%. Second and third were the University of Aberdeen (AB24) and the University of Strathclyde (G1), with rental yields of 6.8% and 6.62% respectively.

The bottom three are all located in London. Imperial College London (SW7) is last, providing a 1.7% average rental yield. King’s College London and the London School of Economics and Political Science, both in WC2, came joint second to last, at 2.3%.

Founder and CEO of Howsy, Calum Brannan, commented: “Many students will be searching for accommodation now that they know where they stand with their results and this huge influx of demand is very positive news for buy-to-let landlords in uni towns across the UK. 

“Of course, student tenants can have their downfalls, but so can any tenant in the rental space and the pros far outweigh the cons in terms of the carousel of consistent demand and income that they supply. 

“With many of the top universities not only attracting the best students but also providing rental yields way above the UK average, a university buy-to-let could be the key to a profitable investment in what are otherwise tough times for landlords at present.”  

UniversityLocationTop 50 RankOutcodeAverage house priceAverage Rent pmAverage Rental Yield (%)
University of DundeeDundee31DD1£146,000£8767.2%
University of AberdeenAberdeen26AB24£101,035£5766.8%
University of StrathclydeGlasgow36G1£160,147£8836.62%
University of LeicesterLeicester38LE1£121,517£6646.56%
Aston University, BirminghamBirmingham43B4£145,640£7936.5%
University of LeedsLeeds16LS2£138,775£7416.41%
Nottingham Trent UniversityNottingham46NG1£160,099£8526.39%
Newcastle UniversityNewcastle upon Tyne23NE1£154,535£8166.3%
University of LiverpoolLiverpool33L3£143,576£7306.1%
Cardiff UniversityCardiff30CF10£172,917£8435.9%
University of SouthamptonSouthampton18SO17£222,839£1,0075.4%
Queen’s University BelfastBelfast27BT7£187,801£8255.3%
University of NottinghamNottingham21NG7£166,848£7185.2%
University of ManchesterManchester17M13£212,944£9155.2%
University of EdinburghEdinburgh15EH8£235,924£9945.1%
University of WarwickCoventry11CV4£257,287£1,0685.0%
Lancaster UniversityLancaster8LA1£160,721£6324.7%
University of GlasgowGlasgow19G12£287,762£1,0594.4%
University of SurreyGuildford, Surrey34GU2£452,347£1,6644.4%
University of KentCanterbury47CT2£316,166£1,1634.4%
University of East Anglia UEANorwich25NR4£314,704£1,1424.4%
University of EssexColchester41CO4£280,313£9874.2%
University of BirminghamBirmingham13B15£242,675£8344.1%
University of SheffieldSheffield28S10£253,392£8654.1%
University of St AndrewsSt Andrews, Fife3KY16£369,814£1,2484.0%
Heriot-Watt UniversityEdinburgh29EH14£271,789£8913.9%
University of StirlingStirling45FK9£276,179£8953.9%
University of SussexBrighton40BN1£405,533£1,3053.9%
University of CambridgeCambridge1CB2£483,588£1,5413.8%
Swansea UniversitySwansea32SA2£231,500£7303.8%
University of LincolnLincoln50LN6£224,959£6893.7%
University of YorkYork22YO10£280,366£8553.7%
Durham UniversityDurham7DH1£224,494£6833.7%
Queen Mary University of LondonTower Hamlets (London Borough)35E1£603,459£1,8293.6%
Arts University BournemouthBournemouth48BH12£292,209£8763.6%
University of BathBath9BA2£402,848£1,1883.5%
University of OxfordOxford2OX1£486,921£1,4253.5%
University of ExeterExeter12EX4£277,640£8003.5%
Royal Holloway, University of LondonEgham24TW20£469,326£1,3413.4%
Harper Adams UniversityNewport, Shropshire42TF10£280,200£7873.4%
University of ReadingReading39RG6£387,577£1,0853.4%
Loughborough UniversityLoughborough6LE11£231,276£6393.3%
Oxford Brookes UniversityOxford49OX3£443,918£1,2263.3%
University for the Creative ArtsFarnham44GU9£463,014£1,2693.3%
University of BristolBristol14BS8£460,385£1,1363.0%
University College LondonCamden (London Borough)10WC1£900,673£2,0562.7%
SOAS University of LondonCamden (London Borough)37WC1£900,673£2,0562.7%
London School of Economics and Political ScienceCity of Westminster (London Borough)4WC2£1,445,306£2,7822.3%
King’s College London, University of LondonCity of Westminster (London Borough)20WC2£1,445,306£2,7822.3%
Imperial College LondonCity of Westminster (London Borough)5SW7£2,002,729£2,8861.7%
Figures supplied by Howsy

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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