Property website Zoopla has published a list of the best university towns for buy to let landlords.
The UK student population is increasing and there is a high demand for rented property by students. The top three University cities Zoopla’s list are in Scotland. The top city is Edinburgh where the annual rental yield of a four-bedroomed property suitable for students is 6.59% a month based on a £2,216 monthly rent.
Just behind Edinburgh is Glasgow with an average rental yield of 6.49%. At number three on the lost is Stirling with rental yields of 5.76%. The number four spot is Salford, the first English city on the list with an annual yield of 5.66%.
Belfast is number five, followed by Dundee, Hamilton, Leeds, Manchester and Aberdeen.
None of the towns or cities on the list is in the south of England which has less impressive rental yields. The worst town according to Zoopla is Kingston-upon-Thames which has an average yield of only 2.81%.
Many parents purchase buy to let property for their children to live in and to generate an income from other student tenants. High rental yields mean that the rents can cover tuition fees so that their children have less student loan debt when they graduate.
A mortgage broker can help parents or other investors find commercial mortgages to finance buy to let property purchases in university towns. Bridging loans are also available to make houses suitable for student accommodation.