Student landlords looking for homes with the best return on investment should look at larger period properties, according to new research.
Larger homes with more rooms, high ceilings and bigger plots are attractive homes to rent to students - and have also led the way in property prices over the past 25 years.
Costing an average £33,619 in 1986, they now come with a tag of around £188,473 after a 461% surge in prices of £546 a month.
As a comparison, the same calculation for properties of all periods shows an increase of 357% or £449 per month, says mortgage lender the Halifax..
Period homes the First World War and earlier includes stylish ‘upstairs downstairs ‘ homes with basements and attic servant quarters to terrace homes spanning the Georgian, Victorian and Edwardian eras in many towns and cities.
Not only do period homes show the best capital appreciation, but the rents are generally higher because larger properties can house more tenants.
Martin Ellis, housing economist for the lender, said: "The age of a property often determines its size, its style and location. Properties from the Victorian or Edwardian era tend to be in higher demand: there are fewer of them, they are often larger, situated in desirable locations, and have a popular style. It's easy to see why pre-1919 homes witnessed such a dramatic increase over the past 25 years."
The next biggest property price rise came from homes built since 1960 with a rise of 348% in 25 years to an average £169,168.
Homes from the end of the Second World War and 1960 have the lowest price rise - 248%.
"Modern properties, built since 1960, have their own pull, which is sometimes linked to convenience; whether it is location on a commuter belt or the fact little extra work is needed.,” said Mr Ellis.
“Properties built between the end of the Second World War and 1960, on the other hand, include many smaller properties, which will contribute to the smaller rise in price over the last 25 years.”
