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Class Of University Students Using Laptops In Lecture

Renting to students is a savvy business move, as any landlord will testify. It’s one of the most lucrative forms of buy-to-let investment – offering great rental yields, plus the chance to generate good profit from capital growth.

However, some property investment opportunities are better than others. In this guide, we’ll quickly outline the key things to consider when looking for a buy-to-let property for sale, and which areas to start searching in.

Buy-to-Let Student Property – Things to Think About

  • What’s the student population? Before you start your property search, identify how many students are actually in the area; as some universities are far larger than others. Some cities have more than one university, which is an immediate boost to the student population.

 

  • Is demand high? There’s no point investing in student buy-to-let property for sale if there are already lots of landlords in operation in the area. Look for locations where demand for rented accommodation is fierce, as this ensures a steady stream of student tenants, plus higher rental yields.

 

  • Are there many suitable properties? Some houses just aren’t appropriate for converting into HMOs, regardless of how much you may want to! Look for existing HMOs on the market (as this means you don’t have to go through the process of converting the property), or failing that, houses that are ripe for conversion; such as roomy Victorian terraces.

 

  • What are the prices like? It’s no good picking a particular area if you don’t have the budget to afford the properties there! Likewise, the rental yield needs to be high enough to make the purchase worthwhile. It’s not so bad paying out more money when you know you’ll be getting more in return.

Best Places to Invest in Student Buy-Let Let Property for Sale

  • St Andrews

Prince William’s old educational establishment is still popular with students, which ensures plenty of interest from tenants – and better yet, property prices in the area are reasonable. This means great rental yields; in some areas as high as 12%.

 

  • Sheffield

Sheffield has two universities, which means there are lots of students actively seeking rented accommodation. The city is currently undergoing regeneration, and it’s our prediction that prices will start to soar shortly – but at the moment, they’re pleasingly affordable.

 

  • Lancaster

In terms of rental yield, Lancaster isn’t far behind St Andrews, with a very healthy average rental yield of 10.7%. The self-styled ‘Brighton of the North’ has a formidable reputation as a trendy place to study too, which has done nothing to harm the university’s appeal to students worldwide.

 

  • Birmingham

Birmingham’s central location has long since been a draw for tenants of all ages, and students are no exception. Invest in a property here and you can expect to generate around 10% rental yield, which is far higher than the national average.

Other University Locations

Other university cities that are worthy of consideration include: Loughborough, Manchester, Nottingham, Exeter and Durham. Due to their expense, Cambridge and Oxford don’t score highly for rental yield – however, properties in these areas hold their values well.

The Buy2Let Shop

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