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Student properties fuelling buy-to-let market
Published: 02/10/2007 |
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Landlords who target student tenants are recording average gross yields of seven per cent, according to new research from Paragon Mortgages. That compares with a buy-to-let industry average of just 5.6 per cent, making student towns the most desirable market for buy-to-let investors. Urban areas with modern and growing universities - such as Middlesbrough, Huddersfield and Canterbury - are among the most in-demand, according to Nigel Terrington of the Paragon Group. He said: "Strong tenant demand in the student market is driving yields in that sector. If landlords select the right type of property in the right location, the returns from the student market can be extremely healthy." Mr Terrington also added that the traditional 'Young Ones' stereotype of student tenants being unruly and destructive no longer rang true. "Whilst there will always be a social element to university, students are looking after the property better to avoid losing deposits and incurring costs for repairs and replacements," he said. Paragon's findings come in sharp contrast to a recent survey by the Telegraph, however, which found that the buy-to-let market is facing a crisis due to the poor construction of purpose-built investment properties.  © Adfero Ltd |
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