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Revealed: the best universities for buy-to-let

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Written by: Christina Hoghton
17/08/2016
Letting to students can be a smart move for landlords, but where are the best yields?

Northern cities top the property charts for university buy-to-let yields, according to research from Property Partner.

The property crowdfunding platform said that the best yields can be found next to Sunderland University in the North East, where rental properties earn net rental income of almost 7% (6.9): 28 times the Bank of England Base Rate.

Nearby Teesside came second with average yields of 5.9%, while third place went to Aston & Birmingham City University, where the average sold house price here is just £116,732, while the average net yield is a healthy 4.5% per year.

Locations near three universities in Greater Manchester made the top 10 property chart, while Edinburgh and Nottingham universities were also buy-to-let hotspots.

South too expensive

The picture is very different in London and the South East, where years of double-digit price rises have squeezed yields on buy-to-let property. Six of the lowest 10 ranking universities for rental income are in the capital, with Imperial College, in Kensington and Chelsea, shown to be the lowest-yielding property area surveyed (1.3% net yield).

Dan Gandesha, CEO of Property Partner, said: “In this era of ultra low rates and high market volatility, stable investments which provide a reliable income, and medium to long-term capital growth prospects are the holy grail.

“Property is a total returns investment, and until recently, it’s been a capital returns play. But with Brexit, the rules of the game are changing. Now our investors are increasingly focussed on the reliable income they can earn, month after month.”

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