A new investigation has uncovered where the best university towns and cities are in Britain to invest as a buy-to-let landlord.
London estate agent Chestertons based their analysis on features such house prices, rental values and average graduate income.
Based on the analysis, Edinburgh received first-class honours, coming in top of the class. Also graduating with good grades were Bristol and Brighton.
However, Liverpool, Aberystwyth and Lancaster could be called in for extra tuition, having been named as the worst regions for student investment. This was due to factors such as slower house price growth.
Ahead of the academic year in September, the top-ten university towns and cities offering the best investment potential for buy-to-let landlords according to Chestertons are:
- St Andrews
Daniel Killick of Chestertons estate agents noted, ‘student lets are generally seen as a great investment; there will always be a reliable level of demand and universities can often be really helpful in pointing students your way. Some locations, however, offer a better return than others. We were keen to get some deeper insights into the UK’s student property market and understand where the most attractive prospects are – and the ones that are less likely to pay off.’
Student let considerations
Investing in student property certainly can provide a number of benefits. Rental yields are high and there are generally less void periods, with constant demand. However, there are HMO legal obligations to take into account and students tend to cause more damage than regular tenants, thus there will be more time and money required to fix issues.
Would-be or current student landlords should make sure that their investment property is sufficiently secured. Figures suggest that crime in student regions is 2.5% greater than the national average.
Buy-to-let landlords looking for student accommodation to invest in should also consider what their prospective tenants are looking for. Features such as all-inclusive bills, Wifi and a good-sized working area could be the difference in securing good tenants.