Looking to make a buy-to-let investment on student property? Wondering where the best buy-to-let areas are?
Property website Zoopla have published a list of the best - and worst - places to purchase a buy-to-let property, so you can maximise your return on investment.
And the results are quite conclusive – university cities in Scotland make up four of the top five places to invest.
Best places to buy-to-let
If you’re looking to join the ever-expanding student buy-to-let market, you’ll want to know the basics. But before you get to grips with the dos and don’ts, you should consider where the best buy-to-let opportunities are.
Edinburgh came out as clear winner in the student buy-to-let league, with a rental yield of 6.11 per cent (worked out on the average asking price and the average monthly rent of a four bedroom house).
This is exceptionally higher than the UK average yield of 3.92 per cent, while Aberdeen (5.66%), Dundee (5.11%) and Glasgow (5.07%) also had impressive yields.
Coventry came in second place with a gross yield of 6.03 per cent as Warwick (4.78%), Chichester (4.73%), Oxford (4.61%), Bolton (4.58%) and Wrexham (4.53%) completed the 10 best places to buy-to-let.
Where to avoid buying property
Generally, university cities in the North of England should be avoided. The three worst yields – 1.47 per cent, 1.87 per cent and 2.14 per cent – came from Middlesbrough, Lancaster and Lincoln respectively, while Sunderland (2.51%) also appears in the bottom 10.
Welsh university cities also represent poor return on investment, as Carmarthen (2.27%), Swansea (2.68%) and Aberystwyth (3.07%) all show a poor gross yield. Hatfield (2.41%), High Wycombe (2.83%) and Derby (3%) complete the list of worst places to invest.
However, it may also be worth keeping in mind the areas that are more likely to cost you money in property damage and rent arrears.
With more students than ever, the student buy-to-let market is certainly one to keep a close eye on.
However, the Bank of England have warned that the current buy-to-let boom could be a risk to financial stability.
Are you looking to rent to students? Where would you decide to purchase a property? Let us know in the comments below!