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University towns offer buy-to-let opportunities
4 April 2008 10:30
University towns can offer great investment opportunities for landlords, according to one property website, although there are also some downsides involved.
Latest figures from Paragon indicate that the buy-to-let market remains in a healthy state, with rental incomes up by 2.4 per cent in February at an average of £11,604, while total annual returns are historically high at 17 per cent.
BuyAssociation's property editor Paul Collins has now advised that cities where there is a shortage of rental accommodation can prove particularly lucrative for landlords, citing Leeds, Newcastle and Cambridge as potential locations for them to buy in.
He said that university towns such as these are often ideal sites for investment as there is always demand among students for places to rent, while during the summer months their flats will be free either for repair work or to let out to tourists.
However, Mr Collins noted that there are also downsides regarding maintenance of these properties, while students' limited finances mean that rents are not as high as they could be and yields tend be lower than average too.
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