You are here: Home - Mortgages - Buy To Let - News -

Revealed: the best universities for buy-to-let

Written by: Christina Hoghton
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.”

There are 1 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • @YourMoneyUK I still cannot log in to online banking
  • @YourMoneyUK Any news from Barclays about getting their online banking working again? I've been trying for over 3 hours!
  • @YourMoneyUK When they say “a small number of customers” they really mean everyone who has tried.

Read previous post:
Seven investment fund picks for struggling savers

When Bank of England governor Mark Carney announced the 0.25% interest rate cut, he also said he fully expected savers...