Universities increase rental yields by up to…


Get your thinking caps

The study found that in Britain, a rental property near a university has an average yield of 5.2%.

Meanwhile, rental properties that are not adjacent to the university have an average yield of just 3.9%. meaning that investing in a buy-to-let property near a university can increase rental yields by 1.3%.

Managing Director of Stripe Property Group, James Forrester, said: “Investing in rental properties near universities is one of the safest bets available in the real estate market. A constant flow of tenants in need of quality housing can significantly reduce empty periods, provided that you, as a landlord, cultivate a good reputation with your tenants.

“In the case of purpose-built student accommodation, it’s also fair to say that the quality of your investment is not only vastly superior, but having it managed helps to ensure that it stays that way for much longer. long time.”

“Perhaps more than any other demographic, students value convenience and location more than almost anything else: getting to class in five minutes instead of an hour is all the difference for students and they are often willing to pay extra for this convenience.”

“And it’s worth remembering that there are many different types of students in modern universities. You have of course the classical school leavers, but you also have a potential audience of foreign students and mature students.

“When thinking about how to showcase and market your properties, it’s worth keeping in mind what makes each of these groups tick. If you do it right, college sites deliver brilliant and reliable returns every year. Forrester added.

Dashboards are here!

A breakdown of countries of origin reveals that in Wales academic returns are 1.4% higher, in England 1.2% higher and in Scotland 0.7% higher.

When a regional analysis was carried out, it revealed that the best university yield increases are in the North East, where property close to a university costs an average of £185,000, which is £27,076 more than the overall regional average of £157,924.

The expected return is however 6.5% for a property close to a university against 4.5% elsewhere, a positive difference of 2%.

In the East Midlands, houses near universities cost -£30,411 less than the wider regional average and therefore offer a yield of 5.5%, which is 1.7% more than the wider regional average of 3.9%.

In Yorkshire & Humber, accommodation close to universities is -£33,973 more affordable than the wider regional average and can yield a return of 6.2%. Compared to the regional average of 4.6%, this represents an increase of 1.6%.

Rental accommodation close to universities also shows higher yields in the East of England (0.9%), the West Midlands (0.9%), the South West (0.7%), the North -west (0.5%) and southeast (0.4%).

As you might have guessed, the only region where proximity to universities does not translate into higher returns is London. This is largely because houses close to universities have an average price of £1.1million, more than half a million more than the capital’s overall average price of £537,920.

Thus, yields near universities are only 3.3%, -0.9% less than the wider city average yield of 4.2%.


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