Top universities for buy-to-let revealed...

A combination of cheap property prices and high demand for rental accommodation in student towns and cities mean some landlords are earning healthy returns annually, although this latest study by lettings management platform, Howsy, suggests that on average, university rental yields sit at 4.4% across the UK.

Howsy looked at the top 50 universities across the UK and the current rental yields available in the immediate vicinity of each campus.

The study found that in terms of the best buy-to-let investment at present, the University of Dundee ranks number one, with rental yields surrounding the university’s campus in the DD1 postcode as high as 7.2% at the moment.

Scottish universities account for the top three best buy-to-let uni campuses, according to the research.

The University of Aberdeen ranks second with an average rental yield in the AB24 postcode coming in at 6.8%, while the University of Strathclyde and the G1 postcode rank third with an average rental yield of 6.6%.

Outside of Scotland, the University of Leicester ranks as the best buy-to-let option in England, with a current average yield of 6.6% in the LE1 postcode.

Birmingham’s Aston University also ranks high (6.5%) along with the University of Leeds (6.41%), Nottingham Trent University (6.4%), Newcastle University (6.3%) and the University of Liverpool (6.1%).

While Cardiff University just makes the top ten with a current yield of 5.9% in the CF10 postcode, it is the best buy-to-let university option for landlords looking to invest in Wales.

Founder and CEO of Howsy, Calum Brannan, said: “Many students will be searching for accommodation now that they know where they stand with their results and this huge influx of demand is very positive news for buy-to-let landlords in uni towns across the UK.

“Of course, student tenants can have their downfalls, but so can any tenant in the rental space and the pros far outweigh the cons in terms of the carousel of consistent demand and income that they supply.

“With many of the top universities not only attracting the best students but also providing rental yields way above the UK average, a university buy-to-let could be the key to a profitable investment in what are otherwise tough times for landlords at present.”

University	Location	Top 50 Rank	Outcode	Average house price	Average Rent pm	Average Rental Yield (%)
University of Dundee	Dundee	31	DD1	£146,000	£876	7.2%
University of Aberdeen	Aberdeen	26	AB24	£101,035	£576	6.8%
University of Strathclyde	Glasgow	36	G1	£160,147	£883	6.62%
University of Leicester	Leicester	38	LE1	£121,517	£664	6.56%
Aston University, Birmingham	Birmingham	43	B4	£145,640	£793	6.5%
University of Leeds	Leeds	16	LS2	£138,775	£741	6.41%
Nottingham Trent University	Nottingham	46	NG1	£160,099	£852	6.39%
Newcastle University	Newcastle upon Tyne	23	NE1	£154,535	£816	6.3%
University of Liverpool	Liverpool	33	L3	£143,576	£730	6.1%
Cardiff University	Cardiff	30	CF10	£172,917	£843	5.9%
University of Southampton	Southampton	18	SO17	£222,839	£1,007	5.4%
Queen's University Belfast	Belfast	27	BT7	£187,801	£825	5.3%
University of Nottingham	Nottingham	21	NG7	£166,848	£718	5.2%
University of Manchester	Manchester	17	M13	£212,944	£915	5.2%
University of Edinburgh	Edinburgh	15	EH8	£235,924	£994	5.1%
University of Warwick	Coventry	11	CV4	£257,287	£1,068	5.0%
Lancaster University	Lancaster	8	LA1	£160,721	£632	4.7%
University of Glasgow	Glasgow	19	G12	£287,762	£1,059	4.4%
University of Surrey	Guildford, Surrey	34	GU2	£452,347	£1,664	4.4%
University of Kent	Canterbury	47	CT2	£316,166	£1,163	4.4%
University of East Anglia UEA	Norwich	25	NR4	£314,704	£1,142	4.4%
University of Essex	Colchester	41	CO4	£280,313	£987	4.2%
University of Birmingham	Birmingham	13	B15	£242,675	£834	4.1%
University of Sheffield	Sheffield	28	S10	£253,392	£865	4.1%
University of St Andrews	St Andrews, Fife	3	KY16	£369,814	£1,248	4.0%
Heriot-Watt University	Edinburgh	29	EH14	£271,789	£891	3.9%
University of Stirling	Stirling	45	FK9	£276,179	£895	3.9%
University of Sussex	Brighton	40	BN1	£405,533	£1,305	3.9%
University of Cambridge	Cambridge	1	CB2	£483,588	£1,541	3.8%
Swansea University	Swansea	32	SA2	£231,500	£730	3.8%
University of Lincoln	Lincoln	50	LN6	£224,959	£689	3.7%
University of York	York	22	YO10	£280,366	£855	3.7%
Durham University	Durham	7	DH1	£224,494	£683	3.7%
Queen Mary University of London	Tower Hamlets (London Borough)	35	E1	£603,459	£1,829	3.6%
Arts University Bournemouth	Bournemouth	48	BH12	£292,209	£876	3.6%
University of Bath	Bath	9	BA2	£402,848	£1,188	3.5%
University of Oxford	Oxford	2	OX1	£486,921	£1,425	3.5%
University of Exeter	Exeter	12	EX4	£277,640	£800	3.5%
Royal Holloway, University of London	Egham	24	TW20	£469,326	£1,341	3.4%
Harper Adams University	Newport, Shropshire	42	TF10	£280,200	£787	3.4%
University of Reading	Reading	39	RG6	£387,577	£1,085	3.4%
Loughborough University	Loughborough	6	LE11	£231,276	£639	3.3%
Oxford Brookes University	Oxford	49	OX3	£443,918	£1,226	3.3%
University for the Creative Arts	Farnham	44	GU9	£463,014	£1,269	3.3%
University of Bristol	Bristol	14	BS8	£460,385	£1,136	3.0%
University College London	Camden (London Borough)	10	WC1	£900,673	£2,056	2.7%
SOAS University of London	Camden (London Borough)	37	WC1	£900,673	£2,056	2.7%
London School of Economics and Political Science	City of Westminster (London Borough)	4	WC2	£1,445,306	£2,782	2.3%
King's College London, University of London	City of Westminster (London Borough)	20	WC2	£1,445,306	£2,782	2.3%
Imperial College London	City of Westminster (London Borough)	5	SW7	£2,002,729	£2,886	1.7%

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Andrew townshend
18 August 2020 16:53 PM

Most of these degree courses could with a bit of hard work be completed in half the time, all one big scam to make the universities and their over paid staff a lot of money, and the students the excuse not to have to find a job for 3 yrs.

Robert Brown
18 August 2020 22:44 PM

Paul

The loony SNP legislation has actually helped rents grow from £1500 per month in 2016 to £2100 in 2020 and I typically have 10 to 15 groups wanting to rent. The secret is to get the new tenants signed up in February and paying from 1st June or earlier, knowing that they will leave as soon as they can, often in early May in final year.

2nd and 3rd year students will pay throughout the summer as they don't want to risk losing my flats which are all very near the University and kept in pristine condition.

I have never had to go to court as the threat of court action and peer pressure on joint and several liability from all guarantors is enough to ensure no rent arrears or unexpected repair bills.

My "professional" tenants, on the other hand, are much less reliable, even with guarantors in place and my only eviction was of a DSS tenant - so never again!

I can tolerate snobbery and demanding parents provided it's matched with top level rents paid on time every month.