Where’s best for student buy to let?

BooksLetting properties to students can be lucrative, but it’s all about ‘Location Location Location’. A report by a leading property website has revealed the ‘best’ and ‘worst’ places to invest in the student buy-to-let market and the findings make for interesting reading.

Surprisingly four of the top five university cities were north of the border with Edinburgh deemed to be the best buy-to-let opportunity with an average yield of 6.11%. Other property investment hotspots in Scotland included Aberdeen (5.66%) Dundee (5.11%) and Glasgow (5.07%). In fact, the only English city to make the Top Five was Coventry with a gross yield of 6.03%

Given that the average yield for a four-bed property is 3.92%, why have Scottish university cities fared so well? And why haven’t the historic heavyweights of Oxford and Cambridge made the grade?
Commenting on the findings the property experts at Zoopla said “Many Scottish universities are now internationally renowned with thriving undergraduate and graduate environments. Demand for rental accommodation in university areas is very high, combined with relatively low house prices, this equates to excellent yields.

“Some may be surprised that the golden triangle of London, Oxford and Cambridge are not producing higher yields. However, high property prices mean buy-to-let investors are more likely to spend a higher proportion of rental income paying off their mortgages”.

It’s said that knowledge is power and if you are thinking of investing in a student buy-to-let property; it’s just as important knowing where to avoid. Northern university cities came out worst with Middlesbrough (1.47%) and Lancaster (1.87%) at the bottom of the league. Welsh university cities also performed poorly with Carmarthen yielding 2.27% and Swansea 2.68%.

With university admissions at a record high; student buy-to-let can pay serious dividends. However, recent changes to tax legislation and predicted interest rate rises mean it isn’t for the fainthearted. Landlord insurance provides a financial safeguard against a wide range of potential problems, from property damage to unpaid rent.

For a great deal on landlord insurance visit Quoteline Direct: we guarantee to beat your renewal quote by at least 10% (based on like for like cover) and hopefully a whole lot more.

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