Each year, the Times Higher Education reveals the top 800 universities in the World University Rankings. With fees in the UK set high across the board and students expected to leave university with an average £44,000 of debt, it’s unsurprising that their priorities are shifting.
What Students Seek research by Glide Utilities revealed that a desire to live close to pubs and bars has diminished and proximity to the university campus is now one of the top things students look for in their accommodation. They also want to know that a good job will be waiting for them at the end of their course, which means the reputation of their chosen university is increasingly important.
33 British universities made the top 200 this year. Glide Utilities has therefore used the latest student average rent data2 to calculate the investments that will return the greatest yield for landlords or prospective landlords considering a move into the student market.
We accept that there are numerous factors that influence a good investment decision, but based on this research alone, the University of Nottingham appears to be the best area to invest in a student property right now. Ranked 143 in the World University Rankings, a terraced house is likely to set you back an average of £102,692 and will return an annual income of £11,700. That is an 11% yield, based upon 3 student tenants.
The Eight Best British University Cities to Invest in Student Property
University of Nottingham £102,692
University of Aberdeen £177,386
University of Manchester £123,670
University of Warwick £145,436
University of Dundee £118,873
University of Edinburgh £170,442
University of Exeter £199,428
University of Leeds £186,000
The University of Aberdeen is another strong investment area, ranked 172nd in the World, terraced houses near the university sell for an average £177,386 and will realise a return of £17,160 or 9.7% when again let to 3 student sharers.
As for the top ranking universities, Manchester and Edinburgh look to be the best investment areas, ranked 56th and 24th in the World respectively. A terraced property nearby the University of Manchester will set you back £123,670, with an annual student tenant return of £11,700 (9% yield). A terraced house in Edinburgh will cost you £170,442 and will realise an annual return of £14,352 (8% yield).
If the idea of renting to students still fills you with dread, you may be surprised to hear that research5 conducted by Glide Utilities last year found that despite stereotypes, 84% of landlords that rent to students say they make the best tenants. This was put down to their associated benefits: better rental yields, annual market for new students, rent is guaranteed by a parent/guardian and rent is paid promptly. Only 3.7% of those surveyed reported experiencing no benefit associated with letting to students.