30-08-2007
Yields on student lets higher than standard buy-to-lets
Renting a buy-to-let property to students is said to be the most profitable form of rental investment in the current market, according to a leading broker.
The average annual yield from a student property is 6.59%, whereas an average buy-to-let is around 5.42%.
Landlords who are considering renting to students should take care when buying a property to ensure it fits the right criteria. Towns or cities where house prices are low, but where there are large numbers of students are the ideal locations. Students tend to keep rents up in an area but can push property prices in specific areas down.
For this reason, university towns in Northern England and Scotland are currently giving the best yields. Durham is currently giving the best yields at 9.12 % on a three bedroom student property, with Nottingham a close second at 9.05%.
St Andrews, Glasgow, Stoke, Sheffield and Blackpool are all areas where yields are good. London and towns in the South of England tend to give below the national average for rental returns.
This highlights the importance of doing thorough research before launching into a property investment.
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