You are here: Home - News -

Which type of property will yield a greater return, a larger student property or a smaller place for professionals?

  • 29/01/2002
  • 0
The motivation for student lets is often a mixture of parental concern and the opportunity for asset...

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.

Stuart Johnson


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
Treasury decision to expand FSA remit raises question over future of the GISC

The Treasury's decision to expand the Financial Services Authority's (FSA) remit to general insuranc...