The study from Stripe Property Group found that rental properties located close to universities enjoy average yields of 5.2 per cent. By contrast, properties which are not university adjacent bring in a typical 3.9 per cent.
The largest university boosts are located in the North East, where properties yield 6.5 per cent when located close to a university, compared to 4.5 per cent elsewhere. The average property near a university in the region costs £185,000, compared to the regional average of £157,924.
This was followed by Yorkshire and Humber, where properties close to universities yielded 6.2 per cent, compared to the regional average of 4.6 per cent, and East Midlands, where those close to universities command yields of 5.5 per cent compared to the 3.9 per cent regional average.
The only region where properties in close proximity to universities do not lead to higher yields is the capital. In London, properties close to universities bring in 3.3 per cent yields, lower than the 3.2 per cent average yield for the wider city.
James Forrester, managing director of Stripe Property Group, said that investing in buy-to-let properties close to universities is “one of the safest bets available” in the property market, noting that you can build a good reputation among tenants thanks to the “consistent stream” of students needing decent accommodation.
He continued: “Perhaps more so than any other demographic, students value convenience and location over almost anything else – getting to and from lectures in five minutes compared to an hour makes a world of difference to students and they’re often willing to pay a premium for that convenience.
“And it’s worth remembering that there are many different types of students populating modern universities. You’ve got the classic school leavers, of course, but you’ve also got a potential audience of overseas students and mature students.”
