One of the fastest growing sectors of the property market has been for student accommodations not just in Britain but for the EU as well. So it is no surprise that almost all of the top 20 postcodes in the UK for buy to let rental yields are near a university campus in research by PropertyData and lettings platform Howsey in a published today by PropertyWire.
The data shows what local area postcodes with 12 month rent divided by average property prices with a ranking of the highest yields for landlords.
Research shows :
'...that 17 out of the top 20 buy to let postcodes in the UK are within easy reach of a university campus with BD1 in Bradford the best university investment option. In the city centre, it is just a short walk from the University of Bradford and with the average house price in the area costing £54,938 and an average monthly rent of £468, landlords can secure yields of 10.2%.'
Postcode SR1 for Sunderland had university property investment yields of 9.4% with Liverpool and in its L7 postcode for University of Liverpool and the Royal Liverpool University Hospital having yields at 9.3%. The L6 area which is near the Royal Liverpool University Hospital has had yields at 9.1% and the L1 postcode near
Teeside University in Middlesbrough which is also near the local rail station has yields at 9.2% and the L6 the University of Liverpool with yields at 8.7%.
Further the report finds:
'Other towns to feature with some of the highest yields for buy to let postcodes are DN31 in Grimsby, EH8 in Edinburgh, CF37 in Pontypridd, PA3, G21, G52 and G14 in Glasgow, M14 in Manchester, NE6 in Newcastle, LS6 in Leeds and NG1 in Nottingham.'
Calum Brannan, Howsy chief executive officer:
‘It’s no coincidence that the vast majority of postcodes with the highest rental yields are found near a university campus, and for a safe bet on your investment, these are the places to look when buying.'
‘While students aren’t always the ideal tenants, they bring consistent demand via an annual flow of new arrivals, the void periods are generally much shorter, and the supply demand imbalance puts the landlord in control when choosing a tenant,’ he pointed out.
‘As a result, these hot pockets of buy to let demand offer landlords an investment option that is almost certain to provide a healthy return despite slower market conditions and uncertain times in the buy to let market,’ he added.
Postcodes without the university demand but have top yields are in Sandwich, Kent CT13, at 18.2%, Greenock, Renfrewshire at 9.7% and Falkirk, FK3, at 7.9%.