The best student towns for buy-to-let investments
With the buy-to-let landscape changing in the wake of governmental reforms, many buy-to-let landlords are looking to diversify their property portfolios and move into more profitable areas.
Student towns are one area where buy-to-let still performs strongly, with some regions boasting low average house prices and a steady rate of potential rental income that can result in a healthy yield.
Property crowdfunding firm Property Partner have recently released the results of an in-depth study into potential buy-to-let profitability in university towns. The research found that in many regions — primarily in the north of England and Scotland — yields of 5–10% could still be achieved.
| Town | Avg. House Price | Rental Income | Yield |
| Sunderland | £65,200 | £575 | 10.6% |
| Teeside/Middlesborough | £56,300 | £425 | 9.1% |
| Aston/Birmingham | £116,700 | £676 | 6.9% |
| Salford | £131,900 | £750 | 6.8% |
| Edinburgh | £197,000 | £1100 | 6.7% |
| Manchester Metropolitan | £160,300 | £895 | 6.7% |
| Manchester | £137,174 | £750 | 6.7% |
| Newcastle/Northumbria | £150,600 | £823 | 6.6% |
| Nottingham/Nottingham Trent | £151,500 | £794 | 6.3% |
| Coventry | £179,400 | £901 | 6.0% |
| Bangor | £156,200 | £750 | 5.8% |
| Huddersfield | £116,800 | £540 | 5.5% |
| Portsmouth | £201,400 | £925 | 5.5% |
| Queen’s Belfast | £183,500 | £802 | 5.2% |
| Edge Hill (Ormskirk) | £239,300 | £1040 | 5.2% |
| Durham | £151,400 | £650 | 5.2% |
| Southampton | £212,900 | £901 | 5.1% |
| Cumbria (Carlisle) | £113,000 | £477 | 5.1% |
| Leeds | £184,600 | £776 | 5.0% |
*Table courtesy of The Telegraph
Such returns indicate that there is still value to be found in the buy-to-let market, provided the correct regions are targeted and financial accounts are effectively managed.
Call on 3 Wise Bears and receive more expert accounting advice for buy-to-let landlords.
