Cities with the most lucrative student tenants revealed
The best places for student landlords to invest in the UK have been revealed with a surprise in store for many.
According to Alan Boswell Landlord Insurance, it undertook a study that ranked different university cities based on the average rent, number of bedrooms and insurance cost for student accommodation.
The results show that Brunel University has the most profitable student tenants, with an average income of £3,163 per month for landlords.
The student properties in the area are spacious, with 5.6 bedrooms on average, compared to the national average of 3.6 bedrooms.
The insurance premiums are also relatively low, at £386 per month, which is less than two-thirds of the cost for University of Bedfordshire students (£617).
Best Place for the most lucrative students
The second best place for the most lucrative students goes to Edge Hill University, with a monthly income of £3,148 for landlords.
The student houses have the second lowest insurance cost in the top 10 (£321), only higher than the University of Gloucestershire (£260).
The rent is also the second highest in the top 10 (£738), behind only the University of Oxford (£837).
| University | Location | Average rent (£) | Average bedrooms | Average cost of landlord insurance (£) | Monthly income (£) |
|---|---|---|---|---|---|
| Brunel University | London | £640 | 5.6 | £386 | £3,163 |
| Edge Hill University | Omskirk | £738 | 4.7 | £321 | £3,148 |
| Royal Holloway | Egham | £630 | 5.1 | £375 | £2,851 |
| University of Gloucestershire | Cheltenham | £553 | 5.6 | £260 | £2,819 |
| University of Oxford | Oxford | £837 | 3.8 | £375 | £2,799 |
| University College Birmingham | Birmingham | £608 | 5.0 | £359 | £2,654 |
| University of Bedfordshire | Luton | £613 | 5.3 | £617 | £2,653 |
| Buckinghamshire New University | High Wycombe | £632 | 4.8 | £387 | £2,615 |
| The University of Nottingham | Nottingham | £538 | 5.7 | £444 | £2,606 |
| Nottingham Trent University | Nottingham | £535 | 5.7 | £444 | £2,589 |
Lucrative student accommodation rankings
The third place in the lucrative student accommodation rankings belongs to Royal Holloway University, with a monthly income of £2,851 for landlords.
The average student property has 5.1 bedrooms, and each tenant pays £630 on average.
The report was based on the data from the landlord experts' unique insurance database and the average rent and number of bedrooms for student accommodation in different university cities.
The study has been published to help student landlords find the best areas to invest in and maximise their profits.
'Interesting report from the landlord insurance firm'
Simon Thompson, the managing director of Accommodation for Students, said: "This is an interesting report from the landlord insurance firm.
"Many landlords will not have appreciated that Brunel was home to the most lucrative student tenant market.
"Or that Edge Hill in Ormskirk would be a close second."
He added: "The data does underline what we say about student landlords needing to offer quality accommodation that meets student’s needs - that's the only guarantee of success today."
Investors reap high returns
The report from Alan Boswell Landlord Insurance comes as another firm highlights the demand for quality properties among domestic and foreign students is soaring in the north of England.
That's down to the investment in higher education facilities that have made the region a popular destination for education and training.
Integritas Property Group (IPG) says it is helping to tackle the housing issues that students face across the UK by providing first-class living options.
The firm has launched initiatives such as Optima in Bradford and is reporting a surge in rental yields.
Bradford and its student population
It points to Bradford and its student population of more than 42,000, with 30% of them coming from 130 countries.
However, the University of Bradford has only 1,004 units for student accommodation, consisting of two managed halls of residence and 34 four-story townhouses.
This creates, IPG says, a huge gap for new, quality student accommodation in the city.
Mitchell Walsh, the firm's chief executive, said: "Investing in the property market in Bradford right now is a smart decision as the rental yield is currently at an impressive 8.25%, some 3% higher than the national average."
You can access the full report at https://www.alanboswell.com/landlord-insurance/
