Landlords enjoy 'strong demand' in student towns

Posted: 21 Aug 2008 13:40:30 GMT

Buy-to-let landlords are experiencing strong levels of demand for accommodation and rental yields over ten per cent in some of the country's largest university towns, it has been revealed.

According to research conducted at the recent Property Investor Show, Nottingham, Durham, Manchester, Hull and Bangor are the best student towns for landlords to consider new additions to their property portfolios.

Nottingham landlords received the highest return on their investments, with average rental yields of 10.2 per cent last year. This was followed by Durham where average yields were 9.23 per cent in 2007.

Nick Clark, managing director of the show, said: "Investors may think that they are buying into a weak market, but as this research shows rental yields are on the increase and buy-to-let investors have a great opportunity to capitalise on the increasing demand for student accommodation.

"There will always be a sustained demand for properties (in these towns) which will produce a far greater annual rental yield than the average buy-to let property.

Earlier this month, the National Landlords Association, which represents 20,000 landlords, urged its members to thoroughly research the rental market and pick tenants with care in order to protect themselves from the credit crunch.

© Houseladder Ltd