Student accommodation remains top Investment in terms of yields

04 April 2012 Categories: News

Student accommodation remains top Investment in terms of yields

The private rental sector in the UK is booming, it has to be said, and if you want to guarantee the best returns available you’ll want to consider investing in student accommodation.

This is the recommendation of Loxley McKenzie, managing director of colordarcy.com after a recent research project showed student property outperforming the rest of the rental market. According to the results of the research landlords with student tenants make an average income of 6.45% whereas landlords with similar properties but who choose to rent to young couples or professionals make just 5.94%.

Why the difference you may ask?

Well as Mr McKenzie explains; “The student property market is renowned for outperforming the wider rental market, with landlords of student properties generating a higher average income by letting properties on a per-room basis rather than the usual per-property basis.”

And because of the on-going need for student property the potential for a constant stream of income is high.

TheWest Midlands, with nine major universities, andYorkshirewith a staggering 14 university locations are top of the ‘income charts’ with investors receiving an average annual yield of 6.5% and 6.4% respectively.Liverpooland the Wirral are at present being regenerated though and hold a great deal of potential for the future.