The buy-to-let market is booming at present, with UK property investors enjoying a solid monthly rental income, plus good returns from capital growth. There’s one particular tenant demographic that offers landlords even greater reliability than the rest, and that’s students.
Buy in the right area, and you’ll enjoy a captive audience, who are actively seeking accommodation, and willing to pay a good price for it. Here’s more information.
The Advantages of Renting to Students
- Predictable market. Providing you’ve selected a lucrative location, you can be confident you’ll enjoy regular tenancy, with very few periods where the house sits empty.
- It’s the highest performing asset. According to recent research, student lets were the best performing asset for UK investors, above all other forms of property investment, and indeed, investments like stocks and shares. Rental yields vary across the country, but it’s not uncommon for landlords to generate a 6-8% yield, which is very solid indeed.
- HMO potential. Many landlords, when looking at buy-to-let properties for sale, seek out houses with the potential to convert to HMO. Students are generally content to live in HMO properties, and these offer a greatly increased monthly rental yield.
- Solid guarantors. Students’ parents often act as guarantors, which provides welcome peace of mind for landlords.
- International students. Savvy property investors have their eyes firmly on the international student market, especially as students from abroad are often happier to pay a premium for higher quality accommodation.
Where to Look for Buy-to-Let Property for Sale for Students
It goes without saying that you’ll need to look in university towns, preferably in well-established areas that have a proven track record of generating solid ROI for their landlords. Here are a few other things to consider when browsing the market:
- Transport links. Students value local train stations or bus stops, especially if they take them directly to their university (or into the centre of town).
- Parking. It’s amazing how many students bring cars with them to university, so if there’s some form of parking at the property (even if it’s just on the road outside), this will be a definite draw.
- Local amenities. Students like to have access to local amenities, such as shops, pubs and restaurants. When searching for buy-to-let property for sale, scan the surrounding area to see what’s available in the near vicinity.
Which University Cities?
Based on recent research, which rated cities on the local rental market, number of students, university ranking and the health of the local rental market, the following university cities came out on top:
- St Andrews
Liverpool, Manchester, Glasgow, Bournemouth and Canterbury were also highly recommended.
Investing in UK Property – The Buy2Let Shop
If you’re considering investing in property in the UK, and you’re looking for the ideal buy-to-let for sale, talk to The Buy2Let Shop. Our team of professional property investment agents have expert knowledge of the student rental market, and we’re perfectly positioned to help you find the right house or apartment, at a price that suits your budget.
To find out more about our services, visit The Buy2Let Shop website today.