Student landlords with properties close to the top ten performing universities could earn rental yields up to 5.22%.

StudentTenant.com investigates rental yields in the UK’s top ten university locations, according to the University League Table 2018.

Some of the UK’s most prestigious and highly ranking universities can receive up to five applications per place, forcing them to turn away nearly 80% of applicants. Due to high demand for spaces at the top universities, student landlords in these top performing areas can rely on reputation alone to fill their rooms, and ensure student property is a reliable investment.


Top Three Performing Universities Per Ranking Yields

Durham

Out of the top 10 ranking universities, Durham is amongst the cheapest places to invest; averaging £151,465 for a four bedroom property. Host to Durham University, and ranked 6th in this year’s University League Table, landlords can expect rental yields of 5.22%

Warwick

Home to the University of Warwick, and a student population of 25,000, Warwick ranks second when it comes to rental yields in the top 10, and is 8th in the league table. Average four bedroom property prices in the area are amongst the highest in the UK, costing an eye-watering £338,220, but landlords can expect rental yields of 5.11%.

Loughborough

Loughborough - 10th in the University League Table ranks third for the best yield, with landlords expecting rental yields of 5%. With a student population of 16,500, Loughborough University could be a stable location for student landlords to invest.


How did the top UK universities perform?

Cambridge

Whilst the University of Cambridge ranks first in University League Tables, it only managed 7th for rental yields out of the top 10. With 20,000 students, and plenty of student villages in the city, student landlords could expect rental yields of 3.64%.

Oxford

Oxford University, whilst ranked the 2nd best university in the UK, finds itself placed 6th for student property rental yields. Offering yields of 4.12%, Oxford is yet to provide potential landlords strong investment opportunities.

London

London is the worst performing location for buy-to-let student landlords; with all three of the top ten ranking universities offering the worst rental yields. Landlords in the capital can expect rental yields of 3.46%, and with property prices amongst the highest in the UK, student property investment is far more risky.


Comment from Danielle Cullen, Managing Director at StudentTenant.com:

“For anyone looking to invest in a student property, it’s always advised to assess the potential rental yields in the area to see if it’s a sound investment. However, I must stress that rental yields aren’t everything and there are many things to consider before purchasing a student rental property.

Is the property located near the university? Does the property have parking spaces? What is the current condition of the property? It’s important to collect as much information before taking the plunge, to ensure you get the best possible deal.

Looking just at rental yields for the top ten ranking universities, it might seem attractive to invest in a student property in an area like Warwick or Loughborough where yields are around 5%. However, when you account for the higher property prices, it might not be the best option available for investors.

Durham could well be an up and coming investment location for the student sector. It’s typically not what I would consider a ‘hotspot’ for private landlords looking to increase their portfolio, but could well be one to watch.”