Student landlords in the North of England can earn double-digit annual returns, according to a survey from StudentTenant.com.
The findings revealed that buying a property near a university can offer attractive returns for landlords, however this is providing they are savvy about the location within which they purchase, with a significant divide between locations. Durham was identified as offering the best buy to let returns out of the top 10 ranking universities. Warwick followed closely behind, whilst Loughborough took third place.
Durham, which ranked 6th in this years University League Table, offers landlords rental returns of 5.22 per cent, whilst Warwick and Loughborough offers returns of 5.11 per cent and 5 per cent respectively.
In contrast, London was found to be the worst location for buy to let student landlords looking to make money. All three of the top 10 ranking universities offering the lowest rental yields were located in the capital, with landlords expecting rental yields of around 3.46 per cent in the city.
Managing director at StudentTenant.com, Danielle Cullen, said: ‘For anyone looking to invest in a student property, it’s always advised to assess the potential rental yields in the area to see if it’s a sound investment. However, I must stress that rental yields aren’t everything and there are many things to consider before purchasing a student rental property. Is the property located near the university? Does the property have parking spaces? What is the current condition of the property? It’s important to collect as much information before taking the plunge, to ensure you get the best possible deal. Durham could well be an up and coming investment location for the student sector. It’s typically not what I would consider a ‘hotspot’ for private landlords looking to increase their portfolio, but could well be one to watch.’