Buy-to-let landlords seeking high rental yields should consider buying properties they can let to students in the North of England, research suggests. Of all the universities in England, Sunderland has been identified as offering the best rental yields, with low house prices - at an average of £70,200 – and moderate average rents producing a yield of 10.6%. The analysis, which was undertaken recently, found that buy-to-let investors’ interest in the student market unsurprisingly peaks at this time of year as students across the country prepare to leave home for university for the first-time. The report compiled a list of 86 university towns and cities across the UK, including Northern Ireland, ranked by net rental yield in each local property market. The cities of the North East performed best, with Sunderland topping the table, alongside Middlesbrough, with Newcastle also featured in the top ten. Birmingham also ranks highly, with the campuses of Aston and Birmingham City University offer an enticing prospect for property investors. The average sold house price here is just £117,000 meaning purchase costs are relatively low, while the average net yield is a healthy 4.95% per year. With the new High Speed 2 train terminal set to be built right next door, investors could potentially enjoy strong capital returns in the long term. High property prices in southern university centres of London, Brighton, Reading and Oxford make these cities less attractive to investors as they tend to offer low yields. Require help? If you require help with your new or re-mortgage please do contact one of our fully qualified advisers.
