St Andrews Offers Best University Buy to Let Yields

St Andrews hit the top spot in a ranking of the highest yielding university towns, conducted by Simple Landlords Insurance.

St Andrews landlords can boast an average return of 12 per cent, according to the research. The university also came third in the Complete University Guide, making it a savvy choice for investors and students. The research studied Largo Road in St Andrews, within which houses cost an average of £300,000 and could offer a home to five students, each paying £150 a week. This would earn a landlord £36,000 a year.

Lancaster also achievied highly, offering returns of 10.73 per cent. Rounding off the top four were the universities of Loughborough and Birmingham, each of which achieved yields of over 10 per cent at 10.53 per cent and 10.73 per cent respectively. Exeter, Durham, Sussex and Nottingham were all also good investment spots, with yields in all of the aforementioned areas exceeding 9.5 per cent.

In contrast, Oxford offered the lowest investment value. Popular student locations such as Iffley Road cost approximately £720,000 and generate yields of just 3.3 per cent. The University of East Anglia, Cambridge, Bristol and Surrey all also performed poorly.

Head of Operations at Simple, Alex Huntley, said: ‘We took the top universities in the country – according to the Complete University Guide and examined which offered the smartest investment opportunity. While the academic league tables are always led by Cambridge and Oxford, our study shows that neither of those locations offers the strongest yield for a buy-to-let investor. Unlike other studies, ours centred in on the house prices in the streets where students at each of the universities actually choose to live. It compared the cost of buying one of these properties with the rent that is actually paid by students studying at the establishments in question. It goes to show that with some research, there are some great investment opportunities out there for people prepared to target the student market,” adds Alex.

He continued: ‘Rising educational costs means that more and more students are having to work to support themselves during university, meaning that, many are there to work rather than just party, and often don’t deserve their bad reputation. One way to mitigate the risk is to invest in an area you know for a student you know – and we’re seeing more people with children at university choosing to invest and buy a property rather than see rent going down the drain.’ 

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