Student accommodation is tops for yields
For landlords facing dwindling profits, the best yields in any UK town or city is for those with a high student population, research reveals.
The findings from Totally Money highlight that in university cities such as Middlesbrough and Liverpool, property prices are not only affordable but also offer a rental yield that is up to seven times more than can be found in London.
Indeed, the first and second places for investment are close to two of the three universities in Liverpool, the L7 and L6 postcodes.
Landlords here enjoy yields of nearly 12%, with average rents of £1,162 and £1,046 per month respectively. House prices there for buy to let investors are £118,225 and £109,940.
The postcode closest to Teesside University, Middlesbrough's TS1, takes third place with a yield of 10.94% on average. The average rent is £595 per month with house prices being an average price of £65,000.
Best areas for BTL investment
For those landlords in London, the best areas for BTL investment are in the east of the city, such as Chingford, Manor Park, Poplar and East Ham.
The lowest yields found outside of London are in the BH14 postcode in Bournemouth with average rental yields of just 1.68%. The next worst area is CW12 in Crewe, with 1.74%.
The managing director of Housing Hand, Jeremy Robinson, said: "The research shows that students want high end accommodation and will pay a premium for ensuites, superfast broadband, premium white goods and security.
"Outside of London, students pay £568 per month on average and will pay more for accommodation close to their university."
He added that international students are prepared to pay even more in rent and most students leaving halls want to live in a quality HMO.
The issues facing London's renters
Meanwhile, a range of issues facing London's renters has been revealed in a new survey of 20,000 tenants.
The findings from Tipi highlight a range of problems including health worries over rat and wasp infestations that tenants had to pay to resolve because their landlord was not interested.
Overcrowding is also a problem as is security including front doors that will not lock or close properly.
Tenants also complain of problem landlords and deposit issues with Tipi's managing director Rajesh Shah saying: "Renting in London is, for too many people, broken."