According to recent research, the best buy to let university in the UK for
investment purposes is the University of Southampton.
Their figures reveal that landlords there can expect a typical rental yield
of 7.4%.
The average house price in the area close to the campus is £226,000, with
an average rent of £1,388 a month.
Best university for student accommodation investment
The next best university for student accommodation investment is the
University of Nottingham with a rental yield of 7%.
It is followed by Nottingham Trent University with a yield of 6.7%, and
then Newcastle University with 6.3%.
In fifth place with a yield of 6%, is the University of Dundee.
UK’s best buy to let universities
The top 10 of the UK’s best buy to let universities include the
Universities of Cardiff, Leicester, Strathclyde and Warwick.
A spokesman for the research company said: “Despite the current landscape,
demand for student and higher education accommodation is high as many
students persist with their studies.
“Student accommodation, as a result, continues to provide a consistent
level of demand for student landlords.”
He added that since most students will be financing their living
arrangements with a student loan, they can still meet their rent
obligations.
The news has been welcomed by the managing director of Accommodation for Students, Simon Thompson, who said: “We
have been highlighting since the coronavirus lockdown began that the
student accommodation sector has strong fundamentals and that investment in
the sector offers good opportunities over the long-term.”
Students demand rent rebates
Meanwhile, a survey carried out by the National Union of Students (NUS) has found that two-thirds
of student tenants worry about not being able to pay their accommodation
rent.
The survey also highlights that a quarter of students have been unable to
pay rent – or their bills – while the pandemic lockdown has been in place.
The figures show that nearly half of students are living in rented
accommodation, and one-in-three believe that because of the coronavirus
pandemic, they will not be allowed to leave their tenancy agreement.
The NUS is now calling for government financial help so students can pay
their rent.
The union’s vice-president, Hillary Gyebi-Ababio, said: “It’s astonishing
the government has placed students under lockdown, but they are still
required to pay rent on accommodation they cannot access.
“We need rent rebates to ensure students are not out-of-pocket for rent
payments on properties they are not living in. Students deserve better than
being financially punished for following public health guidance.”
