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Renting to students provide the most profitable yields for landlords

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In terms of getting a return on investment from property, a study carried out in June this year suggests that student rentals are providing the most profitable yields for property landlords.

A lot of this is due to increased student demand for good quality housing ahead of courses starting next month.

In the past, many buy to let landlords have avoided letting to students because of perceived issues around property damage.  But says the report, property landlords should really consider the increased yields available - especially those in the Northern Powerhouse.  

Landlords in Liverpool, Teeside, and Manchester who have rental properties near universities can expect to receive yields in excess of 10% says the study. 

Jeremy Robinson, managing director of Housing Hand, commented “that new students often opt for halls or an HMO”, which he adds “offers excellent yields for landlords”.

The report interestingly shows that the highest yields came from areas with affordable housing.

A separate study found that Durham is the most profitable student town for buy to let landlords, offering returns of 11.5% per year. Warwick followed in second place, offering yields of 10.3%, followed by Manchester at 8.5%.

Are you a landlord looking to let an HMO? Then please download our free guide to HMO Insurance to find out what you need to know.