Glasgow top for student rent
Buy-to-let investors in the UK’s fourth largest city saw average yields of 4.95% on a typical four bed student property. Landlords in Hull, Manchester, Cambridge and Bristol also saw strong returns.
A Zoopla spokesman said landlords had to take into account student demand, property supply, average property values and average monthly rents: “There is no apparent North-South divide when it comes to student buy-to-let investments.
“A number of towns in the North are showing higher gross yields than the South as a result of property values having remained lower over the past few years whilst rental demand has increased.”
Private rents rose by 1.2% across Britain in the twelve months to August 2013, the Office for National Statistics private rental index found.
London saw the highest increase, at 1.9%, followed by Scotland and Wales at 1.3%. Excluding London, British private rents crept up by just 0.8%.
Rentify chief executive George Spencer said the modest rise in rents concealed significant regional differences: “In some parts of London, for example, there is huge upwards pressure on rents in areas where rental property is in great demand and there is a shortage of stock but in other parts of the country rents are languishing or even falling and landlords are faced with void periods.”
Small rent increases also reflected landlords’ preference for long-term, reliable tenants over higher profits, he added.