Student buy-to-let investments with the best rental yields in the UK
Em Morley - August 18, 2020
Online property management platform Howsy has looked at rental yields nearby the top 50 universities across the UK to determine which areas provide the best buy-to-let opportunities for landlords.
This research looked at the average house prices and average rent prices per month in the outcodes of the top 50 universities to calculate rental yields.
On average, university rental yields sit at 4.4% across the UK, according to the results.
The top three best results can all be found in Scotland. The University of Dundee (DD1) came first, with an average rental yield of 7.2%. Second and third were the University of Aberdeen (AB24) and the University of Strathclyde (G1), with rental yields of 6.8% and 6.62% respectively.
The bottom three are all located in London. Imperial College London (SW7) is last, providing a 1.7% average rental yield. King’s College London and the London School of Economics and Political Science, both in WC2, came joint second to last, at 2.3%.
Founder and CEO of Howsy, Calum Brannan, commented: “Many students will be searching for accommodation now that they know where they stand with their results and this huge influx of demand is very positive news for buy-to-let landlords in uni towns across the UK.
“Of course, student tenants can have their downfalls, but so can any tenant in the rental space and the pros far outweigh the cons in terms of the carousel of consistent demand and income that they supply.
“With many of the top universities not only attracting the best students but also providing rental yields way above the UK average, a university buy-to-let could be the key to a profitable investment in what are otherwise tough times for landlords at present.”