University Proximity Brings Best Buy Let Rental Yields

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Close proximity to a university brings the best buy to let rental yields for property investments according to research by lettings platform Howsy.

The platform found that almost all of the UK’s top 20 best postcodes for buy to let rental yields are located within close proximity to a university campus.

Using statistics from PropertyData, Howsy looked at the best buy to let postcodes based on 12 month’s rent divided by the average property price in the area, ranking each postcode from the highest yield available to buy to let landlords.

The research shows that 17 out of the top 20 buy to let postcodes in the UK are within close proximity of a university campus.

Bradford’s BD1 is the best university investment option in the UK. Covering Bradford city centre, it is just a short walk from the University of Bradford and with the average house price in the area costing £54,938 and an average monthly rent of £468, buy to let landlords can secure yields of 10.2 per cent.

Sunderland’s SR1 is the next best university postcode for property investment with yields of 9.4 per cent, followed by Liverpool’s L7 close by to both the University of Liverpool and the Royal Liverpool University Hospital with the postcode offering yields of 9.3 per cent.

The TS1 postcode, in close proximity to Middlesbrough train station and Teeside University is home to yields of 9.2 per cent and L6 near the Royal Liverpool University Hospital also yields above 9 per cent (9.1 per cent), with L1 close to the University of Liverpool close behind at 8.7 per cent.

Other towns to feature with some of the highest yields for buy to let postcodes are Grimsby (DN31), Edinburgh (EH8), Pontypridd (CF37), Glasgow (PA3, G21, G52 & G14), Manchester (M14), Newcastle (NE6), Leeds (LS6) and Nottingham (NG1).

Founder and CEO of Howsy, Calum Brannan, commented: ‘It’s no coincidence that the vast majority of postcodes with the highest rental yields are found within a stone’s throw of a university campus, and for a safe bet on your investment, these are the places to look when buying.

‘While students aren’t always the ideal tenants, they bring consistent demand via an annual flow of new arrivals, the void periods are generally much shorter, and the supply-demand imbalance puts the landlord in control when choosing a tenant.’


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