The motivation for student lets is often a mixture of parental concern and the opportunity for asset growth over the few years that a child is at university or college. But there are now more individuals buying property in student areas to let out commercially. This makes sense, as there will always be a ready market in university towns and cities.
If you were looking for typical professional lets, you would be looking at anything up to three-bedroom houses, but most probably two-bedroom flats, with a reasonable standard of accommodation and privacy. For student lets, you would want four or five bedroom houses, in one of the less expensive parts of the city. You will need to pay more for your student property and so higher mortgage and maintenance costs. But your income will be greater too. Where you might charge a professional £1,000 pcm for sole rental of a two bed flat, you could charge four students £350 pcm each for a four-bedroom house and still have a greater yield once mortgage costs have been met.
So if you’re not in the market solely for parental reasons student lets may be your best bet.