When most people think of student property they think leftover takeaways, beer can pyramids and dusty unused textbooks lying around, however student buy-to-let investors should really be seeing pound signs.
Last year in the UK investors put nearly £348million into the student property market, research from CB Richard Ellis revealed.
Investors are chasing average net yields of up to 7%.
Loxley McKenzie, MD of colordarcy.com said: "The student property market is renowned for outperforming the wider rental market – with landlords of student properties generating a higher average income by letting properties on a per-room basis rather than the usual per-property basis."
By leasing property to students on a per-room basis, landlords made an average income of 6.45%, compared to 5.94% from properties rented out to young couples.
The West Midlands proved to be a goldmine for those investing in its student property market, Paragon property data showed.
Home to nine universities, including Warwick and Birmingham, the West Midlands offered the highest annual yield for investors of 6.5%.
Yorkshire wasn’t far behind, the region is a hive of student activity with 14 potential locations to choose from including Leeds, York and Sheffield. This reflects in its average annual yield of 6.4%, providing the West Midlands with some healthy competition.
Demand for student property shows no signs of being affected by the introduction of the controversial tuition fees system later this year – students still want to pay tuition fees and will simply borrow more money to pick up the shortfall.
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