You are here: Home - News -

Two thirds of parents consider BTL property for university children

  • 10/11/2021
  • 0
Two thirds of parents consider BTL property for university children
Around 66 per cent of parents are thinking about purchasing a buy-to-let property in the proximity of their children’s universities to help mitigate high living costs.


According to a survey by Trussle, which collated views from 2,000 homeowners with children, more than half would consider downsizing to help their children through university.

The report added that student rental properties were still an attractive proposition for investors with rental yield pegged between 13 and 18 per cent higher than the general private rented sector.

There were concerns the pandemic would negatively impact student lets as lockdown and remote learning could reduce enrolments, however UCAS reported an 8.4 per cent annual rise in applications this year.

Paragon research earlier this year also showed that student tenant demand was strong, with a quarter of landlords reporting a rise in demand since the start of the pandemic and just over half saying they saw no change.

Miles Robinson, head of mortgages at Trussle, said: “It’s true that buy-to-lets aren’t the bargain that they once were. Changes to tax and the stamp duty surcharge have impacted returns, which made rental the king of investments, leading to a peak in popularity during 2007.

“However, this new data shows that property is still seen as a safe and reliable way of generating extra income. This can be both in the short term, through rent collection and long-term gains in house prices. In addition, the low interest climate means would-be landlords can lock in a competitive buy-to-let mortgage, which are typically interest only.”


University towns with best rental yields and cheap towns

The report continued that Newcastle University offered best rental yield for student property of 9.4 per cent, based on an average house price of £192,567 and average rental income of £18,096.

This was followed by University of Southampton with a rental yield of 8.9 per cent, with average house price of £235,911 and annual rental income of £21,084.

Cardiff University came third with an estimated rental yield of 7.64 per cent with house prices pegged at £274,531 and annual rental income of £29,076.

The report added that the UK’s cheapest university town was Belfast with house price estimated at £152,175.

Aberdeen was the second cheapest university town at £154,480 and Dundee came third with house prices pegged at £174,173.

There are 0 Comment(s)

You may also be interested in