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Landlords must act now to attract students for the next academic year

Landlords must act now to attract students for the next academic year

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  • Top ten student buy-to-let hotspots revealed
  • Landlords need to have an offer accepted on a property by 1 November, to secure student rentals

Research by Move with Us, the residential property experts, has shown that landlords looking to purchase property to rent to students in the next academic year need to have an offer accepted on a property by 1 November this year in order to complete in time to benefit from the student rental rush in January* 2014.

Move with Us surveyed over 40 university accommodation officers in the UK, and found that over half of second and third year students start looking for property to rent in January and February for the following academic year, not September as is often presumed. The majority of first year students choose to go straight into halls of residency, but will typically start to look for accommodation for their second year when they return from their Christmas break.

The average time taken from having an offer accepted on a property to completion is approximately two months in the current market. Therefore, landlords looking to take advantage of the next intake of students need to have their offer accepted on a property by 1 November 2013 in order to have a chance to get the keys to their investment by 1 January 2014.

Robin King, Director at Move with Us, says: “Landlords looking to benefit from the rental yields offered by student lets should note the highest yielding postcodes and remain open-minded about where to purchase property, not just focussing on their immediate area.”

“Lower capital investment costs and higher rental prices will deliver good yields and fewer voids, maximising potential returns. Popular student areas such as Birmingham and Liverpool are offering yields of up to 10.6%. While gross rental yields can be attractive, it is important for investors to appreciate that changing capital values can radically alter the real investment potential.”

“Landlords should follow the usual rules of purchasing property close to shops, amenities and transport to maximise rental yields. A good power shower and fast internet connection are also becoming increasingly important, especially to student tenants.”


Top ten university rental yield postcodes
 

Move with Us, in association with Home.co.uk, have calculated the top rental yield postal districts for popular university towns in England, indicating the hotspots for student buy-to-let property:

Postal district

Gross rental yield

Closest Universities

Distance

Estimated travel time

1

B7 (Birmingham)

10.6%

Aston University

1.9 miles

7 minutes

The University of Law

2.6 miles

8 minutes

Birmingham City University

2.7 miles

9 minutes

University of Birmingham

5.5 miles

13 minutes

2

L14 (Liverpool)

9.6%

Liverpool Hope University

3.8 miles

13 minutes

Liverpool John Moores University

4.2 miles

14 minutes

University of Liverpool

4.5 miles

13 minutes

3

TS1 (Middlesbrough)

9.2%

Teesside University

0.4 miles

3 minutes

4

CV1 (Coventry)

8.1%

Coventry University

0.5 miles

3 minutes

5

M18 (Manchester)

8.0%

University of Manchester

3.8 miles

13 minutes

Manchester Metropolitan University

6.5 miles

19 minutes

6

LS11 (Leeds)

7.9%

Leeds Metropolitan University

3.7 miles

10 minutes

University of Leeds

4.3 miles

12 minutes

7

NE37 (Newcastle)

7.2%

Newcastle University

7.1 miles

17 minutes

8

BS13 (Bristol)

6.7%

University of Bristol

4.7 miles

15 minutes

University of the West of England

7.0 miles

19 minutes

9

CB2 (Cambridge)

6.2%

University of Cambridge

2.7 miles

9 minutes

Anglia Ruskin

3.1 miles

10 minutes

10

OX13 (Oxford)

5.5%

University of Oxford

8.1 miles

16 minutes

Examples of properties currently on sale in some of the top rental yield postal districts for popular university towns such as Coventry, Leeds and Liverpool are attached.

 

Methodology

*Move with Us contacted 41 University accommodation officers and calculated that 51% of students look for rental property in January and February and 21% look for property in November and December for the upcoming academic year.

Gross rental yield is defined as median annual rent divided by median asking price. The data was collected during the first six months of 2013 for two bedroom properties advertised online for sale and for rent on Home.co.uk. Best student buy-to-let postal districts based on highest rental yields in popular university towns, taking in to account proximity from local universities postcodes and remain open-minded about where to purchase property, not just focussing on their immediate area.”  “Lower capital investment costs and higher rental prices will deliver good yields and fewer voids, maximising potential returns. Popular student areas such as Birmingham and Liverpool are offering yields of up to 10.6%. While gross rental yields can be attractive, it is important for investors to appreciate that changing capital values can radically alter the real investment potential.”

“Landlords should follow the usual rules of purchasing property close to shops, amenities and transport to maximise rental yields. A good power shower and fast internet connection are also becoming increasingly important, especially to student tenants.”

Top ten university rental yield postcodes

 Move with Us, in association with Home.co.uk, have calculated the top rental yield postal districts for popular university towns in England, indicating the hotspots for student buy-to-let property:

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