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Rental yields best in student towns
Purchasing a buy-to-let property in a university town can yield excellent rental returns, reaching ten per cent in some towns.
The latest research carried out by the Property Investor Show, which is being held from the 19 to 21 September at Excel in London’s Docklands, reveals that Nottingham is the best student town in which to buy rental property.
With low property prices and higher rents, Nottingham offers the highest return on investment with average rental yields increasing by 1.13 per cent since last year to 10.19 per cent.
Durham follows close behind with average rental yields of 9.23 per cent. The worst performing towns are Warwick and Crewe.
The average rental yield of 7.9% for the top ten University towns outstrips the UK average of 6.4% for other buy-to-let properties, as property prices drop by 17% and rents increase by 8% since this time last year.
Manchester, Hull and Bangor complete the top five most profitable towns. Landlords who let out student accommodation in these towns will achieve an annual rental yield in excess of seven per cent.
Nick Clark, managing director of the Property Investor Show, said: “Investors may think that they are buying into a weak market, but as this research shows rental yields are on the increase and buy-to-let investors have a great opportunity to capitalise on the increasing demand for student accommodation, whilst taking advantage of lower house prices.”
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