A new study has revealed that Coventry is the top place to invest in student property in the UK. Research from a leading property website has shown some surprising results, with some unheralded locations showing excellent rental yields while some of the more well-known higher education locations lag further down the list.
Yields of over 6.5 per cent available in several University towns
While it may only be ranked the 63rd best institution in the UK, properties near Coventry University offer the best yields. Property in the city costs an average of £98,138, while rental charges for the area average £570, delivering a yield of 7 per cent.
Properties near Teesside University offer a yield of 6.9 per cent while student accommodation near the University of Chester offers investors a yield of 6.8 per cent despite the university’s lowly 80th place ranking for academic studies.
The other top ten rental yield locations are Cardiff, Sheffield, Southampton, Plymouth, Glasgow and Northumbria.
For example, at UWIC in Cardiff the average asking price of a property is £140,000 and the rental asking price is £761, giving a yield of 6.5 per cent.
Interestingly, the UK’s top three academically rated universities – Cambridge, Oxford and St Andrews – fare badly in terms of rental yields. Cambridge sits in 58th spot, Oxford in 77th and St Andrews in 79th in terms of their rental yields.
Nigel Lewis from the website that came up with the research said: “Student tuition fees are hitting highs of up to £9,000 a year and the cost of accommodation at University is also eye wateringly high.
“While this is good news for landlords looking to profit from this market, it may also lead many parents to wonder if they should join the buy to let boom and purchase a home for their child, rather than subsidising or paying their rent for three years plus.”
Author Nick Marr