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Glasgow, Hull and Manchester best towns for student buy-to-let investors

Alex Johnson

6c7e53f97d091bb47a72e912e0ea6f5dd4d94915 300x225 Glasgow, Hull and Manchester best towns for student buy to let investorsGlasgow is the best student town for UK landlords, according to research from property website Zoopla.co.uk, with an average gross yield of 4.95% on a typical four-bedroom student property. It is followed by Hull (4.8%), Manchester (4.59%), Cambridge (4.54%) and Bristol (4.29%).

Earlier today, the Office for National Statistics announced its latest round of statistics for private housing rental prices. These showed that in the 12 months to August 2013 private rental prices paid by tenants in Great Britain rose by 1.2% (excluding London the rise was 0.8%).

The research from Zoopla – one of The Independent’s partners – suggests that the average gross yield on a typical four-bed student property across the UK is 3.79%. Those with the worst returns at the moment were Carlisle (2.58%), Middlesbrough (2.61%) and Bournemouth (3.09%).

Despite having the largest student population in the UK, London was the tenth most attractive place in the UK to invest in student accommodation. Despite high demand for rental accommodation, house prices in the capital are increasing more rapidly than rents and reducing the returns on offer for landlords. The average gross yield on a typical student property in London is 4.2%.

In terms of best value for students, the cheapest digs are in Middlesbrough where the average monthly rent for a four-bed property is £562. At the other end of the scale, London is by far the most expensive with an average four-bed property costing £3,485 per month. Oxford (£1,834) and Cambridge (£1,628) are also among the most expensive.

“The largest number of students or most prestigious university clearly isn’t necessarily best for investment returns,” said Lawrence Hall of Zoopla. “Landlords need to do their research and take into account the student demand, property supply, average property values and average monthly rents. There is no apparent North/South divide when it comes to student buy-to-let investments and a number of towns in the North are showing higher gross yields than the South as a result of property values having remained lower over the past few years whilst rental demand has increased.”

BEST STUDENT BUY TO LET TOWNS

Rank University Town Avg. Monthly Rent
(4 bed house)
Avg. Asking Price
(4 bed house)
Gross Yield
1 Glasgow £1,083 £262,888 4.95%
2 Hull £737 £184,440 4.80%
3 Manchester £1,053 £275,132 4.59%
4 Cheltenham £1,631 £429,585 4.56%
5 Cambridge £1,628 £429,976 4.54%
6 Buckingham £1,502 £405,017 4.45%
7 Luton £1,076 £291,454 4.43%
8 Bristol £1,224 £342,699 4.29%
9 Lincoln £877 £248,980 4.23%
10 London £3,485 £995,104 4.20%

WORST STUDENT BUY TO LET TOWNS

Rank University Town Avg. Monthly Rent
(4 bed house)
Avg. Asking Price
(4 bed house)
Gross Yield
1 Carlisle £608 £282,306 2.58%
2 Middlesbrough £562 £258,770 2.61%
3 Bournemouth £1,452 £564,560 3.09%
4 Guildford £1,902 £734,763 3.11%
5 Stoke-on-Trent £677 £258,314 3.14%
6 Bath £1,520 £579,370 3.15%
7 Worcester £946 £359,815 3.15%
8 Huddersfield £736 £277,027 3.19%
9 Derby £764 £277,808 3.30%
10 Birmingham £766 £270,371 3.40%


Pictured is a 3 bedroom terraced house to rent in Crescent Road, Middlesbrough, on with Infinity for £520 per month.

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