This list is designed to help those looking to invest in property investment while their children are at university, acting as a landlord while they study.
By analysing property prices and rental fees in the country’s most popular university towns, Urban.co.uk has rated the best areas for investment, based on value-for-money when buying and the subsequent rental yield.
The North of England, the home of many of the country’s most popular universities, leads the way offering the best return on investment to parents, even with the newly launched 3% stamp duty increase. Leeds and Manchester came out on top, offering a whopping 6% potential rental yield, whilst Sheffield came in at a close second, offering an impressive 5.3% return.
Other university towns to offer the best investment opportunities include:
1. Leeds / Manchester (6%)
2. Sheffield (5.3%)
3. Plymouth (5%)
4. Canterbury (4.7%)
5. Birmingham (4.2%)
6. Oxford (4.1%)
7. Bristol (3.6%)
8. Brighton (3.4%)
9. Guildford (3.1%)
10. Exeter (2.9%)
N.B. Rental yields in brackets.
Between 2010-12 and 2014-16, student rents have continued to rise across the board and this is not limited to private lets. Average rental levels in purpose-built student accommodation have also continued to rise considerably, above the rate of inflation and the average rental costs for a student on a three year course could be as much as £23,1754. For those parents with buying power, buy-to-let offers an opportunity to control rising student costs whilst also making a long-term investment for the future too.
Adam Male, co-founder of Urban.co.uk said: “Universities in the North are incredibly popular, and for parents with children studying in the area, this region presents itself as a prime place to invest, particularly as student rental fees continue to climb. With massive transport investments planned for these areas as well as more businesses moving to the North, a buy-to-let in these areas is not only likely to offer short-term financial gains, but a really solid long-term investment too.”
