Highest Rental Yields to be had from University Cities

It has been revealed that almost all of the UK’s top 20 best postcodes for buy-to-let rental yields are nearby a university campus.

This information comes from new research released by lettings platform Howsy. The statistics provided by PropertyData calculated 12 months’ rent divided by the average property price in each area. It then ranked these postcodes from the highest rental yields to the lowest for buy-to-let landlords.

It has been determined that 17 out of the top 20 on this list are within easy reach of a university campus.

Number one on the list was BD1 in Bradford, providing a key student accommodation investment for landlords. The city centre is a short walk from the University of Bradford and average house prices currently sit at £54,938. Average monthly rent prices are at £468, meaning landlords look to receive a yield of 10.2%.

Other areas on the list include SR1 in Sunderland, with a potential yield of 9.4%, and L7 in Liverpool (close to both the University of Liverpool and the Royal Liverpool University Hospital), with a potential yield of 9.3%.

Calum Brannan, Founder and CEO of Howsy, 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.

“As a result, these hot pockets of buy-to-let demand offer landlords an investment option that is almost certain to provide a healthy return despite slower market conditions and uncertain times in the buy-to-let market. Couple this with Howsy’s 24/7 customer service that seems to resonate well with student tenants and their nocturnal lifestyle and you’re onto a winner.”