Last year, 592,290 people applied for university places in the UK. EU applications rose by 7%, and applicants from outside the EU also rose – by 3%. As you can see, the student rental market is thriving in the UK – and seeking a buy-to-let property for sale to use as an HMO house for students is a savvy business move.
However, in order to make a good profit, it’s important to know which university cities offer the best returns. Here’s a handy guide to help you.
Buy-to-Let Property for Sale Near Universities
According to LendInvest, the location currently offering best financial returns for landlords is Sunderland; where average returns currently equal 6.5%. The city is also the cheapest to invest in, out of all the areas featured in the top 20 university areas for landlords. In fact, it’s entirely possible to find a good student buy-to-let property for sale for under £100,000.
Manchester comes in at a close second place, offering returns of 6.2% per annum – which is hardly surprising, given the reasonable price of accommodation. There are over 90,000 students currently studying in Manchester, so demand is also high – which guarantees a steady stream of tenants for your property.
Other Cities Offering Great Returns
Liverpool, Sheffield and Coventry were also in the top five; with each offering around 5.2% returns each year, on average. Indeed, most of the cities to feature in the top 20 were in the north or the Midlands; though east London came in at no. 19, offering 4.6% returns per annum.
Neither Cambridge or Oxford featured on the list, though both offer a steady return; 3.9% and 3.6% respectively.
Finding Property Investment Opportunities
When deciding where to look for student buy-to-let property for sale, you need to consider a number of factors. These include:
The Benefits of Renting to Students
Renting to students offers a lot of advantages. Firstly, you’re likely to enjoy a steady stream of tenants throughout each academic year; especially if demand is high in the area. Students are also happier to share accommodation with larger numbers of people, which means you can maximise rental returns.
The Buy2Let Shop Limited
If you’d like to find out more about investing in property in the UK, with a view to renting to students, get in touch with The Buy2Let Shop. We’re a team of property investment agents in London, and we’ll help you find the right house or apartment for your needs, in the right area.
We also offer assistance with property auctions, and hold regular property investment seminars to boost your knowledge of the market. To learn more, simply visit The Buy2Let Shop website today.