Posts with tag: University

Where are the top university locations for buy-to-let investment?

Published On: May 22, 2017 at 9:29 am

Tags: Buy-to-Let,rental yields,student accommodation,student property yields,University

The top university cities for buy-to-let investment have been revealed in a new report from StudentTenant.com.

It indicates that landlords can earn substantial returns when purchasing near a university, with shrewd investors able to enjoy the best yields.

Northern Delights

A mixture of low property prices and spiralling demand for rental accommodation in prominent student cities in the North of England is seeing some landlords enjoying double-digit returns.

This said, data from the report suggests that the typical rental yield in the student buy-to-let market across Britain is substantially lower.

Durham came top of the class, offering the best buy-to-let of the top-ten ranked universities in the list. This was followed by Warwick and Loughborough.

Landlords purchasing near Durham University can look forward to average yields of 5.22%. Warwick and Loughborough offer typical returns of 5.11% and 5% respectively.

Capital Pains

On the other hand, London was found to be the worst performing region for buy-to-let student landlords. All three of the top ten ranked universities here saw the lowest rental yields.

Here, landlords can expect rental yields of 3.46%, with property prices here amongst the highest in the UK.

The table below shows the top-ten ranked university locations for buy-to-let investment in the UK:

Rental Yield Rank	Location	University	League Table Rank	Student Population	Avg. Property Price	Avg. Rental Yield
1	Durham	Durham University	6	17,927	£151,465	5.22%
2	Warwick	University of Warwick	8	25,615	£338,220	5.11%
3	Loughborough	Loughborough University	10	16,500	£237,005	4.93%
4	Fife	University of St Andrews	3	8,790	£158,113	4.60%
5	Lancaster	Lancaster University	9	13,336	£148,268	4.46%
6	Oxford	University of Oxford	2	22,602	£497,603	4.12%
7	Cambridge	University of Cambridge	1	19,672	£465,588	3.64%
8	London	Imperial College London	5	14,700+	£717,217	4.53%
9	London	London School of Economics	4	8,895	£1,125,671	3.46%
10	London	University College London	7	38,000+	£1,125,671	3.46%

Where are the top university locations for buy-to-let investment?

Rental Yields

Danielle Cullen, managing director at StudentTenant.com, observed: ‘For anyone looking to invest in a student property, it’s always advised to assess the potential rental yields in the area to see if it’s a sound investment. However, I must stress that rental yields aren’t everything and there are many things to consider before purchasing a student rental property.’[1]

‘Is the property located near the university? Does the property have parking spaces? What is the current condition of the property? It’s important to collect as much information before taking the plunge, to ensure you get the best possible deal,’ she continued.[1]

Moving on, Cullen said: ‘Looking just at rental yields for the top ten ranking universities, it might seem attractive to invest in a student property in an area like Warwick or Loughborough where yields are around 5%. However, when you account for the higher property prices, it might not be the best option available for investors.’[1]

‘Durham could well be an up and coming investment location for the student sector. It’s typically not what I would consider a ‘hotspot’ for private landlords looking to increase their portfolio, but could well be one to watch.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/5/top-university-towns-for-buy-to-let-revealed

Northern University Cities Dominate Best Investment Hotspots

Published On: April 4, 2017 at 8:13 am

Author: Em Morley

Categories: Landlord News

Tags: property investment,rental yields,student property,University

Northern university cities dominate the list of the best buy-to-let investment hotspots in the UK, according to recent figures.

Research found that half of the top 20 best buy-to-let investment hotspots are in northern university cities. Manchester – home to the University of Manchester and Manchester Metropolitan University – offers buy-to-let landlords a potential average rental yield of 6.73% – the best in the UK.

In addition, Salford – in the metropolitan borough of Greater Manchester – offers investors a very respectable student property yield of 6.68%.

Northern University Cities Dominate Best Investment Hotspots

Portsmouth – home to the University of Portsmouth – came in third place, with an average yield of 5.75%. Meanwhile, Leeds, Cardiff and Coventry were close behind, with average returns of 5.67%, 5.59% and 5.59% respectively.

Plenty of UK cities saw growth in average yield, with Hull – where the University of Hull is based – experiencing the greatest average yield increase of 0.31%, closely followed by Luton – home to the University of Bedfordshire – with a rise of 0.31%, and Rotherham, at 0.28%.

The study also found that cities hosting the very best UK universities were not necessarily the best locations for buy-to-let investors.

Despite being home to the fourth best university in the world and boasting alumni such as Charles Darwin, Isaac Newton and Stephen Hawking, Cambridge actually has the worst average rental yield, at 2.7%.

Oxford – host to the current number one university in the world – also followed this trend, with an average return of 3.9%.

Chester was found to be the second worst investment hotspot for landlords. Home to the University of Chester, the city recorded an average rental yield of just 3.04%.

Chelmsford, home to Anglia Ruskin University, followed closely behind, at 3.07%, with Wolverhampton and Carlisle not far off – 3.27% and 3.29% respectively.

Even London – home to King’s College London, the London School of Economics and the University of London – recorded an average rental yield of just 3.25%, ranking the fourth worst in the UK.

It seems that the best investments really are found in northern university cities!

Danielle Cullen, the Managing Director of StudentTenant.com, comments on the findings: “For anyone looking into investing into student property, it’s important to assess the potential yields in the area. It’s really interesting to see that the cities that contain the best universities actually offer the worst yields, and just a little bit of research will uncover this for potential investors.

“Yield is a bit of a buzzword for investors, but often, a lot of people don’t actually know how to work them out, or how valuable knowing that information is. I would strongly advise spending a bit of time learning about the importance and how you can optimise them to ensure you get the best possible return on investment.”

She continues: “I would also express though that yields aren’t everything you need to know. There are a lot of other factors a landlord should consider before investing, such as proposed vacancy rates. For example, if the property will be vacant over the summer in a student let. Or, if it’s more attractive for a certain type of tenancy, such as short-term lets where there is likely to be a higher rate of vacancy, but perhaps the potential of higher rents.”

Which University locations get top marks for investment?

Published On: August 10, 2016 at 8:48 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,investment in student property,student landlords,University,University towns and cities

New research has revealed the most lucrative university cities in Britain, based on property price, rents and house price growth.

Leading London estate agent Chestertons also looked at average property values and typical graduate income in order to ascertain their leaderboard.

Top of the class

According to the analysis, Edinburgh received top marks for being the best university city in which to invest. Also receiving A grades were Bristol and Brighton.

At the bottom of the class were Aberystwyth, Liverpool and Lancaster. This was due to more affordable rents and reduced house price growth.

With the new academic year fast approaching, the league table makes interesting reading for potential windfalls from buy-to-let investment at university towns and cites in the UK.

The top-ten towns and cities providing the best investment opportunities were found to be:

Edinburgh
Bristol
Brighton
Reading
Oxford
York
Cambridge
St Andrews
Southampton
Warwick

Which University locations get top marks for investment?

Reliable demand

Daniel Killick of Chestertons, noted, ‘student lets are generally seen as great investment; there will always be a reliable level of demand and universities can often be really helpful in pointing students your way. Some locations, however, offer a better return than others. We were keen to get some deeper insights into the UK’s student property market and understand where the most attractive prospects are-and the ones that are less likely to pay off.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/8/top-class-university-cities-for-buy-to-let-property-unveiled

Soaring student numbers driving rental shortage

Published On: April 6, 2016 at 10:51 am

Author: Em Morley

Categories: Property News

Tags: landlords,rental property,students,University

Record numbers of university students looking for rental accommodation has led to a distinct lack of affordable rental properties.

That is the main finding of a report from the Mistoria Group, which says that there is a severe shortage of accommodation for this group.

Highs

Last year, the Government raised the cap on the number of places universities are able to offer by 30,000. This in turn has lead to increased competition between institutions.

According to UCAS, the total number of university applicants reached a record high in the previous academic year. Recent figures show a 3% rise in the number of year-on-year applications.

The largest growing group in recent times was non-European Union students, with numbers rising by 50% in the last decade. There has also been a distinct rise in UK student numbers during the last 20 years.

Competition

Data from SpareRoom.co.uk shows that up to 22 students and professionals competed for each room available in university towns and cities in 2015. Only 40% of rooms in the top 25 UK university cities are available to students.

The most fierce competition was seen in Edinburgh, where 22 people battled for one room. In Oxford, 100 students had no accommodation at the start of the new academic year, with 15 people searching for every available room.

Changing pace

Mish Liyanage, Managing Director of The Mistoria Group observed, ‘unfortunately, university managed accommodation has not kept pace with the growth in student numbers and this is driving increased demand for HMOS and PSBAs in many UK towns and cities.’[1]

‘Traditionally universities were responsible for providing good quality student accommodation. However, over the last ten years, demand for university accommodation has outstripped demand and the private sector has supplemented some of the shortfall, ‘Liyanage continued.[1]

Soaring student numbers driving rental shortage

Robust and Lucrative

Liyanage went on to say that, ‘the student property is a robust asset class. Since 2011, student accommodation has outperformed all other traditional property assets and has been the strongest growing investment property market in the UK. It has continued to be one of the most resilient investment sectors, with rental incomes and property values remaining stable, or increasing. The attraction of the student accommodation sector has been driven by structural undersupply and positive rental growth year-on-year.’[1]

‘Without doubt, the student rental market is the most financially lucrative for investors and landlords if it is managed well. An investor can currently buy a four bed HMO in a good location for students and professionals, fully refurbished and furnished and tenanted for the coming year, for less than £150,000 in the North West based on 2015 prices.’[1]

Concluding, Liyanage said, ‘Investing in student HMO accommodation offers a long-term investment option, as the property is highly likely to be in constant demand throughout the calendar year. Typical rents are significantly higher for student properties, than a comparable buy-to-let property in the same city.’[1]

[1] http://www.propertyreporter.co.uk/landlords/record-student-numbers-fuel-rental-property-shortage.html

Top places for university property investment revealed

Published On: September 10, 2015 at 2:44 pm

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,student properties,University

With the new academic year here once again and with many students returning to University for another semester full of hard ‘work, leading online estate agent eMoov.co.uk has uncovered the best locations to invest in a student property.

e.Moov’s University Property Index gives each university an index score assessed on how they perform against the average UCAS entry requirement in relation to the typical average property price in the area.

Northern rules

Results from the investigation show that the North of England and Scotland are top of the list, with eight of the top ten scoring universities. A UCAS entry level requirement of 547 points, coupled with an average property cost of £214,735 sees Durham top the list, with an eMoov index score of 102.[1]

Coming in second was Strathclyde with an index score of 96. Manchester took the final podium position with 90, with Edinburgh (89) and Warwick (84) making up the top five.[1]

Nottingham (84), Lancaster (83), Leeds (82), St Andrews (80) and Aberdeen (79) completed the top-ten. However, the soaring prices of property in London has seen its universities fair poorly in the Index. Of 117 universities involved in the study, 15 of the 17 outside of the top 100 are located in the capital.[1]

Just four of London’s universities made it into the top 100, but interestingly, were all awarded a negative index score. The universities were namely Queen Mary’s in 94^th place and with a score of -30, the London School of Economics (96^th, -37), East London University (96t^h, -37) and Kings College London (100^th, -74).[1]

Bottom of the class

At the other end of the scale, the worst performing University in the Index was the Imperial College London, despite having a large UCAS entry points requirement of 568. The colossal property prices in London SW7 gives the University a cost per entry point of £3,361, 368% more than the study average. This results in an eMoov Property Index total of -309%.[1]

The age-old battle between Oxford and Cambridge saw the former come out on top, ranking at number 13 with Cambridge lagging behind in 19^th.

Another survey of 1,000 homeowners from eMoov found that 70% would be interested in buying a solid investment property, if it meant their child could establish themselves on the property ladder.[1]

Top places for university property investment revealed

Costly

‘Sending your kids off to university can be a joyful occasion for many parents and is often the first time they fly the nest to fend for themselves,’ observed Russell Quirk, founder and CEO of eMoov.co.uk. ‘What with the recent increase in university fees and the cost of living, it can also be an extremely expensive time for parent and student alike, as the debt begins to pile up.’[1]

Quirk believes that, ‘this study shows which universities offer the best level of degree, but also an affordable property price, should you want to invest in a house for your child, or even as a uni-let for yourself.’[1]

Concluding, Mr Quirk said that, ‘students are certainly an easy target where the high street letting agent is concerned and it is common practice for agents to strip them of their hefty deposits, for even the most minor of reasons. Not only does buying a university property avoid this but it also provides a future home should they stay in the chosen city for work, or a great money making opportunity renting to future students.’[1]

The top-twenty universities in the Index were found to be:

eMoov Index Rank	Institution	Average House Price	Average UCAS Entry Point	Property Price Per Entry Point	eMoov Uni Property Index
1	Durham	£214,735	524	£ 409.49	102
2	Strathclyde	£161,099	476	£ 338.16	96
3	Manchester	£126,212	435	£ 290.08	90
4	Edinburgh	£203,958	484	£ 421.31	89
5	Warwick	£223,314	482	£ 463.11	84
6	Nottingham	£138,972	428	£ 324.93	84
7	Lancaster	£ 153,591	436	£ 352.52	83
8	Leeds	£152,349	431	£ 353.23	82
9	St Andrews	£305,294	517	£ 590.17	80
10	Aberdeen	£186,733	446	£ 418.31	79
11	Newcastle	£ 156,318	424	£ 368.41	78
12	Exeter	£222,572	463	£ 480.41	77
13	Oxford	£435,590	573	£ 760.72	77
14	Cardiff	£167,826	427	£ 393.50	76
15	Liverpool	£ 151,077	404	£ 374.14	72
16	Dundee	£160,202	410	£ 391.21	72
17	Leicester	£ 141,031	386	£ 365.37	68
18	York	£ 224,175	437	£ 512.63	66
19	Cambridge	£568,495	602	£ 944.34	65
20	Teesside	£ 58,421	306	£ 191.23	65

[1]

[1] http://www.propertyreporter.co.uk/landlords/where-is-top-of-the-class-for-university-property-investment.html

Students pay more in rent at top Universities

Published On: August 13, 2015 at 2:39 pm

Author: Em Morley

Categories: Landlord News

Tags: student rents,students,University

With thousands of A-Level students receiving their results today, many will be looking forward to beginning University courses in the Autumn.

To mark results day, Accommodation for Students has released its annual report that focuses on the cost of student accommodation.

Rents

Data from the analysis indicates that student accommodation markets have remained fairly steady, with a very modest average rent increase of £1.43 from 2014 to £82.09.

Interestingly however, the average rents table show that students attending six of the best Universities in Britain (Cambridge, Oxford, Imperial College London, London School of Economics, Exeter and The University of Surrey) are likely to have to pay between £20 and £58 more per week than the national average.[1]

Results show that of the top ten ranked university guides listed in The Complete University Guide 2016, only Lancaster University had average rental costs lower than the national average.

Regional differences

There was also found to be firm regional disparities in place, with students in the North of England paying £14.73 less on average per week than those in the South. Students in or near to London pay much more per week on average, with costs found to be £122 higher than the rest of Britain.[2]

Welsh students have the most spare cash in their pockets, with average rents £69.09 per week. Scottish students also have more money for an extra couple of drinks in the Student Union, with weekly rents north of the border totalling £72.81.[3]

Unsurprisingly, London topped the list of cities with the mist expensive weekly average rental values. Academics in the capital pay £140 per week, followed by those in Cambridge (£124), Kingston (£115), Aberdeen (£109) and Guildford (£104).[4]

Additionally, the report revealed the cities where the greatest range of weekly rents were present. These cities are Plymouth, Exeter, Nottingham and Liverpool, where gaps between rents were up to £146. In Plymouth for example, the lowest weekly rent was £39 with the highest £185.

At the other end of the scale, Bolton, Middlesbrough, Wolverhampton, Stockton and Walsall were found to command the lowest amount of weekly rents, with none of these Universities in the top-thirty in the 2016 league table.

Students pay more in rent at top Universities

Increases

This year’s largest increases in weekly rents were found in Luton, Bangor and Derby, all of which were up 20% on 2014. These regions all went from providing accommodation at a rental cost below the national average to either above or beyond this figure.

Furthermore, the number of student homes offering a bills-inclusive option was greater than those offering a non-bills inclusive payment. Furthermore, the average extra cost for bills inclusive properties was between £9-£13 per week.[5]

‘It’s great to see that the overall market has remained stable over the last year, this is positive for both investor landlords and students,’ commented Simon Thompson, Director of Accommodation for Students. ‘Unsurprisingly, the north/south divide in rent values remains apparent, just as in the private rented sector. Naturally rental increases in some areas will be governed by student demand, often determined by what courses are available, but it is interesting to see that there appears to be some correlation between the highest ranked universities and cost of student accommodation,’ he continued.[6]

‘Bills inclusive rental options are increasingly prevalent which shows landlords are reacting to student needs. Anything which helps students to manage their finances is appealing and I think this trend will continue to grow over the next few years as the cost of attending university creeps up,’ Thompson concluded.[7]

[1] http://www.propertyreporter.co.uk/landlords/students-pay-premium-to-attend-top-universities.html