Student property yields trump other lettings

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Landlords with student property in their portfolios are benefiting from significantly higher rental yields than the buy-to-let market as a whole, according to Paragon.

Research by Paragon claims portfolios containing student property have 25% higher gross rental yields than for the rental market in general. The survey of landlords found portfolios containing student property had a gross annual yield of 7% on average, compared with 5.6% for other portfolios. Furthermore, the research found when student property makes up more than half of a total portfolio, average yields increase to 8.6%. Paragons says student landlords can also expect strong growth in the coming years as the Government continues to increase university numbers to 50% by 2010. Towns wit...

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