Student landlords can take advantage of the highest rental yields by investing in property in Durham, according to Landlord Mortgages.
The area surrounding Durham University benefits from low house prices, averaging at around £114,588, which allow property owners to benefit from a rental yield of 9.12% in a house with three students, claims Landlord Mortgages.
Nottingham comes just behind Durham, with an average rental yield of 9.05%, followed by Stoke, Sheffield and Blackpool, all major Northern cities. The trend shows areas with low house prices can provide higher rental yields as students are often able to afford similar levels of rent.
The research found Crewe was the town with the worst rental yields for landlords at just 3.4%, due to average house prices of over £170,000 and low weekly rents of just £37.22 per student.
Crewe was joined by a number of southern towns, which have much higher property prices, including Pontypridd, Guildford, Cheltenham and Devon.
Lee Grandin, managing director of Landlord Mortgages, says: “With the average student property offering 6.59%, the yields for renting to students are far higher than those to be gained by standard buy to let property.
“Average rental yields in England are currently 5.42%*, so investors who choose to rent to students can make far higher returns, providing they find the right property.”
The research also found that top universities, Oxford and Cambridge, provided wildly varying yields. Cambridge offers a high yield of 6.82% while Oxford provided a yield of just 5.08%, well below the UK average.
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