Student property yields reach 13 per cent in North West

Landlords letting to students have noted gross cash rental yields of 13 per cent in some parts of the UK, according to new research.

The Mistoria Group research showed that student property in the North West saw average gross cash rental yields reach this figure for the first three quarters of 2014.

This is significantly higher than the 6.37 per cent forecast as an average student property yield for the current year.

According to the Mistoria Group, the yields for student property in the North West are up eight per cent year-on-year and up 22 per cent across the last five years.

Student property could also provide yields that are between five and six per cent higher than the buy to let market as a whole.

Mish Liyanage, managing director of The Mistoria Group, said the sector offers strong returns for investors thanks to continuous demand and rising student numbers.

“The domestic student population continues to grow with an extra 30,000 university places offered in 2014, and UCAS has reported they are expecting an all-time high of 500,000 applications this year,” he explained.

Student property has providing continuously high yields across the past five years, with rental incomes remaining stable, even in the face of property price increases.

As student properties are occupied for most the year, they represent a good option for landlords and investors who are keen to avoid periods when the properties are not in use.

Additional research from the National Landlords Association last year discovered that students are the most reliable tenants in the private rented sector.

They were deemed the least likely to miss rental payments, with only 38 per cent of landlords letting to students noting arrears in the previous 12 months.

Many university towns and cities across the UK offer gross yields that are above the UK average, providing a number of opportunities for those considering buy to let investment.

Author