Student market 'still lucrative for landlords'

Student lettings can be more lucrative for landlords than renting to couples or professionals, an industry expert has said.

Lee Grandin, director of Landlord Mortgages, said that it was "impossible for anyone to cool the market" for rental properties while house prices and interest rates continued to increase.

"There is the underlying factor that there is a lack of supplier property," he explained. "The lack of supplier property, full stop, will help the market along."

In particular, Mr Grandin pointed out that landlords could expect good yields from student properties in the north of the country, as initial costs are likely to be lower.

He added: "Student buy-to-let properties have yielded a higher rental income than any other type of tenancy.

"If you think about it house prices are lower in the north than in the south. However, the university in the north can better than the university in the south, so that's the driving force.

"If the university is better in proportion to house prices, i.e. the cost of living there, then yes, you will end up with a better rental yield than you would expect elsewhere."

Recently, a spokesperson for Arla said that it was vital landlords got hold of as much local knowledge as possible when planning new property purchases.