Durham 'offers best student yields for landlords'

News Category: Industry News

Landlords can obtain good returns by renting to students, but only if they pick their locations with care, new research suggests.

Data gathered by Landlord Mortgages found that the typical rental yield on a student rental property in the UK is now 6.59 per cent - above the average rental yield for property in the UK.

However, the study also showed that yields from student lets can vary significantly depending on the city the properties are in.

For example, student rental yields in Durham are around 9.12 per cent a year, while those in Crewe come in at just 3.4 per cent annually.

Lee Grandin, managing director of Landlord Mortgages, commented: "Students can be a profitable bunch to rent to, providing you choose a good location.

"Whether you are entering the market as an investor in student property, or as a parent buying accommodation for a child at university, the returns can be substantial."

Recent research suggested that ten per cent of recent graduates will have to rent for their whole life, as they will never be able to afford their own property.