Press Release Summary = University towns have long been regarded as good places for the buy-to-let industry, given that they provide a regular and reliable supply of potential tenants looking for accommodation and numbers are historically higher than in the past. Now, according to research by Landlord Mortgages, Durham has emerged as the best prospect of them all.
Press Release Body = University towns have long been regarded as good places for the buy-to-let industry, given that they provide a regular and reliable supply of potential tenants looking for accommodation and numbers are historically higher than in the past. Now, according to research by Landlord Mortgages, Durham has emerged as the best prospect of them all.
The figures provided by Landlord Mortgages show well enough the overall advantage of investing in a university town, with the average yield in such places standing at 6.59 per cent compared with 5.42 per cent for other towns. In Durham the figure soars to 9.12 per cent.
Cities and towns in the north and midlands provide most of the best returns, with Nottingham coming second in the table at 9.05 per cent, followed by Stoke, Sheffield and Blackpool.
However, the regional variation is not universal, with Crewe, Stoke\'s near-neighbour, coming bottom with a 3.4 per cent yield, although the other lowest-yield towns, Cheltenham, Guildford and Pontypridd, are in the southern half of the country. The county of Devon is also in the bottom five. The difference in average weekly rent is £30 on average, Crewe students paying £37 to Durham\'s £67, the Times reported
As Lee Grandin, at Landlord Mortgages put it: \"Students can be a profitable bunch to rent to, providing you choose a good location.\"
Durham may be a good investment for a few reasons. One of them is the relatively low cost of housing, which, Crewe apart, shows a correlation between lower returns and higher prices. Secondly, Durham is a popular and high-ranking university, coming 10th in the Good University Guide table this year.
Nottingham can at least compare with Durham in this last respect, with the University of Nottingham coming 14th in the table, but it is in many ways different from Durham, being a larger city with not one but two universities. But this lack of rhyme and reason is true across the board. For instance, while rental costs are similar in both Oxford and Cambridge - £79 and £84 respectively - the returns in Cambridge are 6.82 per cent compared with Oxford\'s 5.08 per cent, the Daily Telegraph reports.
The most important things for any investor remain the same in any university location. As Mr Grandin put it: \"Local knowledge is of utmost importance and landlords must also consider all of the differences that renting to students has to the average rental property.\"
2025
