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Student houses have the best yields for landlords


By Simon Thompson
 
     
Student landlords are likely to own rental properties returning the best yields, according to new research. Shared student house generate average yields of 6.45% against an average of 6.2% for all other tenants. The best regions for highest average rental yields are the West Midlands (6.5%), Yorkshire and Humber (6.4% and the North East (6.2%). All other regions return a below average yield. Central London has the worst average yield (5.5%) due to the higher cost of housing. The findings come from research by specialist property investment mortgage lender Paragon. Yield is calculated by dividing a letting property's annual rental income by the value. Calculating yields helps with assessing profitability and comparing two rental properties against each other. “Returns for many landlords will often be higher than stated yields as these are calculated at the current rental income against the property's value today, not taking into account capital appreciation since the landlord purchased the property or their loan-to-value,” said Nigel Terrington, Paragon’s chief executive. "Student yields outperform the market because they are let on a per room basis, which can generate higher rental income. On the downside, they tend to require a higher degree of maintenance, so landlords have to factor that cost into their overall business models." Other results from the survey look at portfolio yields and how serving different market segments affects returns on investment. The size of a property portfolio had a marginal bearing on yields - average yields for landlords with more than 20 properties had an average yield of 6.2%, while those with twoto four properties generated a yield of 6.5%. Besides students, young professionals were the only other tenant category producing an above average yield at 6.22%. The worst yields were from letting to benefit claimants, which returned an average yield of 5.78%. Landlords letting to these tenants could see their yields drop even further as a result of proposed government cuts to benefit payments.
 
 
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Only 32% of students think their degree is good value for money
 

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Posted by on 12/06/2018 17:29:15
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Posted by on 12/06/2018 10:22:11
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Posted by on 31/05/2018 09:27:43
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AFS Website Update
 

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Posted by on 21/05/2018 16:19:33
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The Glide guide to maintaining a positive relationship with student tenants.
 
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Posted by on 21/05/2018 15:01:55
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Landlord and Letting Agent Survey 2018
 

Since 2013, AFS have regularly conducted the Landlord and Agent Letting Survey trying to achieve a complete picture of how landlords and letting agents view the student. accommodation market. In early 2018 we conducted a further survey among our registered

     
Posted by on 21/05/2018 12:59:23
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Labour pledges a ‘living rent' for tenants
 

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Posted by on 14/05/2018 16:26:17
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Posted by on 10/05/2018 11:41:54
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Posted by on 09/05/2018 14:18:59
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The latest Buy to Let hotspots revealed
 

The best buy to let property investment hotspots in the UK have been revealed and it appears that the Midlands offers the best opportunities.

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Posted by on 18/04/2018 16:42:44
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Rent to Right scheme slammed by Government inspector
 

The flagship government Right to Rent scheme which compels a landlord to check the immigration status of their potential tenants has been criticised by a government inspector.

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Posted by on 12/04/2018 10:29:03
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Rental deposits could be capped at five weeks' rent
 

The government says that rental deposits being charged to tenants should be capped at five weeks’ of rent.

The Housing, Communities and Local Government committee has been struggling to find an acceptable level for deposits that are demanded from

     
Posted by on 09/04/2018 10:47:18
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Record low rates for buy to let five-year mortgages
 

The rate for an average five year fixed buy to let mortgage has fallen to 3.43%, a figure not seen since last October, data reveals.

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Posted by on 22/03/2018 13:23:08
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The north is 'best to invest' in property
 

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Posted by on 22/03/2018 11:22:46
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Northern Powerhouse highlighted as a global property investment hotspot
 

The future potential of the Northern Powerhouse has been highlighted as a global property investment hotspot for property investors.

Property investment firm IP Global has carried out research by analysing the world's leading property investment market

     
Posted by on 22/03/2018 11:13:16
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New housing watchdog will target rogue landlords
 

The government is to create a new housing watchdog that will tackle rogue landlords over the state of home repairs.

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Posted by on 15/03/2018 14:24:17
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Number of accidental landlords on the rise
 

There has been a big rise in the number of accidental landlords over the last three years, say researchers.

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Posted by on 14/03/2018 15:10:48
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One in three landlords looking to expand portfolios
 

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Posted by on 14/03/2018 15:09:01
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AFS Website Update
 

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Posted by on 09/03/2018 15:57:24
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Buy to let investors 'unload properties'
 

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Posted by on 07/03/2018 15:42:47
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The Benefits of Bills Inclusive
 

Over the last five years www.accommodatoinforstudents.com have worked closely with Glide, a company that specialise in shared bills for students.

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Posted by on 06/03/2018 15:16:44
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'No DSS' landlords could be breaking the law
 

Landlords who say they will not accept DSS tenants in the private rental sector may be breaking the law.

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Posted by on 06/03/2018 11:21:29
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Landlords warned - prepare for more regulation
 

Landlords in England are being warned that they should prepare for more regulation after the government published a consultation.

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Posted by on 28/02/2018 16:22:18
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Top University Cities
 

One of the key criteria for a thriving student accommodation market in a city is a successful University.

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Posted by on 20/02/2018 11:10:38
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Posted by on 07/02/2018 11:21:00
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2017 Rent Reviews
 

As part of our ongoing programme of research we regularly review rents. We do this by using the rental data from our website as well as from external sources.

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Posted by on 31/01/2018 10:49:58
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Landlords are increasingly unwilling to accept universal credit tenants
 

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Posted by on 16/01/2018 12:12:59
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Posted by on 16/01/2018 12:09:56
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New minimum HMO room sizes for landlords revealed
 

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Posted by on 12/01/2018 15:22:36
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Research reveals that 2017’s rents fell in real terms
 

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Posted by on 12/01/2018 15:12:34
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Landlords can now receive Universal Credit directly
 

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Posted by on 12/01/2018 14:56:54
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Tax relief worth billions still available for landlords
 

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Posted by on 12/01/2018 14:54:16
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UK's student accommodation sector will continue strong growth in 2018
 

The provision of student accommodation in the UK will continue to grow through 2018 after a record-breaking 2017, says one real estate firm.

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Posted by on 12/01/2018 14:41:47
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Tenants are put off by misleading property adverts
 

Most tenants say they have been deterred from renting a property because of misleading property adverts or having a bad experiencing when viewing one, according to research.

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Posted by on 14/12/2017 09:23:32
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Landlords more willing to let to Universal Credit claimants
 

Landlords are apparently increasingly willing to rent their properties to Universal Credit claimants but say the government needs to address their concerns.

Research carried out by the Residential Landlords’ Association (RLA) reveals that 36% of

     
Posted by on 14/12/2017 09:21:40
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Draft Tenant fees Bill
 
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Posted by on 17/11/2017 11:27:16
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Landlords could increase rents after rates rise
 

Landlords could push up rents more quickly after the first interest rate rise for 10 years and could lead to the sector being 'galvanised', according to the Landbay Rental Index.

The founder of Landbay, John Goodall, said that landlords have been facin

     
Posted by on 15/11/2017 12:24:08
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UK's landlords see rents slide in October
 

Landlords around the UK have seen rents fall in October with the biggest falls being in the South West, according to one index.

The HomeLet rental index reveals that every region was affected with the south west seeing a fall of -2.9%, while in the sou

     
Posted by on 15/11/2017 12:22:34
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Number one reason for tenant deposit deductions revealed
 

The main reason why tenants see deposit deductions being made has been revealed by research from the Association of Residential Letting Agents (ARLA).

The organisation says that tenants who fail to clean their property properly when leaving is the top

     
Posted by on 15/11/2017 12:18:23
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Letting agent fees WILL be banned
 

New legislation has been unveiled that will see letting agent fees being banned and hefty fines being imposed on those who try to charge them.

In addition, agents in England and Wales also face imprisonment if they have already been fined £5,000

     
Posted by on 06/11/2017 10:10:08
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Landlord confidence shows signs of improvement
 

The levels of confidence amongst landlords is improving after suffering from historic low levels, according to one index.

BM Solutions says landlords expressing confidence in their business has seen its biggest improvement to 41%, an increase of 5% on

     
Posted by on 06/11/2017 10:08:54
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Rents increase and yields are stable
 

Landlords with rental properties in England and Wales have seen rents increase in most areas over the past year, according to the latest index.

The findings from Your Move show that the strongest rent growth was seen by landlords in the North West.

     
Posted by on 06/11/2017 10:07:19
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Rents for the UK’s rental properties rise by 2.1%
 

The average rent for a buy to let property grew by 2.1% in the year to September, an index has revealed.

The figures from HomeLet show that the average rent now being paid is £927 every month.

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Posted by on 26/10/2017 11:21:12
Read More

     
Landlords prefer childless couples as tenants
 

The best tenants being favoured by landlords are childless couples, says a new survey.

According to Intus Lettings, these couples are considered to be the 'perfect tenants' by landlords with 29% stating that couples without children are their preferred

     
Posted by on 16/10/2017 09:33:02
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One in 20 BTL properties fail minimum energy standards
 

It has been revealed that one in 20 properties in the UK's private rental sector are failing minimum energy standards.

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Posted by on 13/10/2017 14:15:32
Read More

     
Landlords start exiting the buy to let sector
 

One leading firm of letting agents is warning that buy to let investors are beginning to exit the sector.

The warning comes from Belvoir who say that while the numbers of landlords leaving is not huge, there is a trend appearing.

The firm's chi

     
Posted by on 12/09/2017 17:23:28
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Landlords increasingly look to sell one or more units
 

Landlords around the UK are increasingly looking to sell one or more of their investment properties over the coming 12 months, according to a survey.

The Residential Landlords’ Association (RLA) questioned nearly 3,000 landlords about their futur

     
Posted by on 11/09/2017 17:42:29
Read More

     
Private sector rents up in June
 

An index has revealed that private sector rents for landlords in England and Wales grew by 1.6% between May and June.

The findings from Your Move's buy to let index show that the average rent being paid is £827 per month; that's 2.1% higher than

     
Posted by on 08/09/2017 17:12:50
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Landlord confidence takes a knock
 

Despite the prospect of high yields and profitability, a survey has revealed the landlord confidence around the UK has fallen.

The findings from BM Solutions looked at all the key indicators for the second quarter of 2017.

They say that the lev

     
Posted by on 06/09/2017 17:27:40
Read More

     
Young tenants turned away for late payment fears
 

Shocking new research has revealed that young tenants are increasingly being turned down by landlords because they fear rent arrears.

The findings from a university reveal that landlords are increasingly likely to refuse a tenant under the age of 35 fr

     
Posted by on 31/08/2017 16:39:57
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