24
Sep
2018

Scotland’s super six for student buy to lets

Scotland has snatched six of the top 10 best student buy to let hotspots in the UK - including the coveted first place crown.

Property portal Zoopla analysed rent and property price data for four bedroom homes in the UK’s 127 university towns and cities to rank the best places for parents and landlords to invest.

For parents looking for a home for children attending university, the statistics also show how long a property investment is likely to take to repay the £27,750 tuition fees charged for a three-year degree course.

Student buy to let can keep a lid on living costs for families with children at university.

Rent returns assume three bedrooms are rented out, while a child lives in the fourth rent-free.

The figures do not include buying, selling or other associated costs - but check with the local authority to find out if shared house licensing laws apply.

The worst property ‘not spots’ for student buy to let are in England, bar Carmarthen, Wales.

Top 10 university city investments by gross yield

 

Rank

City

Average rent a month

Average property price

Gross yield

Months to pay tuition fees

1

Edinburgh

£2,216

£403,431

6.59%

17

2

Glasgow

£1,425

£263,482

6.49%

26

3

Stirling

£1,382

£288,124

5.76%

27

4

Salford, Manchester

£1,394

£295,224

5.66%

27

5

Belfast

£999

£212,634

5.64%

37

6

Dundee

£1,119

£244,066

5.50%

33

7

Hamilton

£1,135

£256,256

5.38%

33

8

Leeds

£1,301

£297,419

5.25%

28

9

Manchester

£1,286

£298,381

5.17%

29

10

Aberdeen

£1,406

£333,205

5.06%

26

 

Source: Zoopla

Gross yield is the money a landlord can expect to make in a year without deducting expenses.

Yield is worked out by dividing rental income for a year by the property value.

 

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