Best rental yields in university towns and cities for property investors revealed

Coventry is the top place to invest in student accommodation in the UK with a 7% rental yield, followed Teeside, Chester and Edinburgh, according to new research.

But some of the most popular and prestigious universities, Cambridge, Oxford and St Andrews are the worst from a property investment perspective, the research reveals.

In the heart of the Midlands and currently sixty third placed academically, properties near Coventry University offer the best yields. To buy a property in the city costs on average £98,138, while rental charges for the area are on average £570, delivering a yield of 7%.

Homes near Teesside University, currently sixtieth place in the academic league are second on the list with a yield of 6.9%. The University of Chester, currently in place 80 for academic studies, takes third place at 6.8%.

However the UK’s top three academically rated universities, Cambridge, Oxford and St Andrews, sit far down the tables of best investment opportunities, in positions 58, 77, and 79, respectively for rental yield.

For universities scoring highly on both league tables, the University of Warwick is rated as the sixth best university in the UK for teaching excellence and is in place 17 on the yield list at 5.4%.

‘Student tuition fees are hitting highs of up to £9,000 a year and the cost of accommodation at University is also eye wateringly high. While this is good news for landlords looking to profit from this market, it may also lead many parents to wonder if they should join the buy to let boom and purchase a home for their child, rather than subsidising or paying their rent for three years plus,’ said Nigel Lewis property analyst from PrimeLocation.

The other top ten rental yield locations are Cardiff, Sheffield, Southampton, Plymouth, Glasgow and Northumbria.

At UWIC in Cardiff the average asking price is £140,000, the rental asking price is £761 and the rental yield 6.5%. Around Sheffield Hallam University it is £118,162 to buy, £632 rental and yield of £6.4%.

Southampton asking price is £168,117, rental asking price £881 and rental yield 6.3%. In Plymouth it is £132,140 to buy, £646 rental and 5.9% rental yield.

While around Glasgow Caledonian it is £133,322 asking price, £643 rental and a rental yield of 5.8%. In Northumbria the asking price is £162,250, rental price £779 and rental yield 5.8%.

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