Brexit has not had the negative effect on the student property market that come people anticipated. In fact, student properties continue to be identified as one of the most lucrative investments available to prospective landlords, with sky-high yields of up to 12 per cent on offer.
New research has revealed the remarkable returns available to investors in a number of key university towns and cities across the UK. Recent research has shown that St. Andrews, in Scotland, delivers the greatest yield of 12 per cent, followed by Lancaster, Loughborough and Birmingham, all of which provide a chance to achieve a yield of over 10 per cent.
Exeter, Durham, Sussex and Nottingham were also highlighted as areas in which a lucrative investment can be made, with yields in excess of 9.5 per cent reported.
In terms of ongoing student development, cities including Bath, Brighton, Bristol and Edinburgh should be on your radar, closely followed by smaller cities Guildford and Exeter, as demand is high for their pipelines of future development.
Allison Thompson, Managing Director of Lettings South at property specialist Leaders, says, “Student properties offer an attractive investment option for landlords, with an extremely high number of young people currently studying ensuring demand for suitable homes in many towns is strong.
“Many landlords choose to adapt their property so that it can house four, five or even more students, each with a private bedroom and each paying rent. This can generate a significant rental income and ensure an excellent return on investment.
“The majority of large towns and cities boast at least one university so letting to students is open to landlords in all regions. However, it is crucial to do your homework first to ensure you buy in a town with high demand and in a street that will be popular with students and attract great rents.
“Letting to students is often seen as higher risk but there are a number of steps you can take to ensure your property is looked after and your interests protected. Working with an experienced letting agent such as Leaders is the best way to minimise the risks and maximise the benefits of investment.”
The study by Simple Landlords Insurance looked at rental returns in the specific streets where students live, rather than at city-wide trends.
Allison adds, “Buying a student property is a specialist investment that differs greatly from a standard buy-to-let project, so you will need local expertise and insight to ensure your property fits the bill for both students and you as an investor.”
For more information or advice on investing in property contact your local Leaders branch.