Student accommodation 'leads' buy-to-let sector

Posted: 03 Sep 2008 13:04:26 GMT

Student accommodation represents a shining beacon in the UK's buy-to-let market as rental yields continue to outpace those of other types of property, it has been revealed.

According to a property by headlineproperty.co.uk, landlords feel that student accommodation in university towns and cities is a much more financially attractive proposition than property in locations without higher education institutions.

Earlier this summer, it was estimated that rental yields on student properties are as much as two per cent higher than those from buy-to-let properties in non-university towns.

The website's research indicated that 65 per cent feel that there is still a gap in yields buy-to-let properties in university towns and those from elsewhere. This was attributed to increased demand for student digs, as more people go to university.

Cambridge was the most popular university town among investors - due to its world-famous university and steady intake of overseas students. It was followed by Nottingham and Brighton.

Recently, research conducted at the Property Investor Show indicated that Nottingham, Durham, Manchester, Hull and Bangor provide landlords with the best opportunities for the purchase of new student properties.

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