More than two-thirds of parents are thinking about buying a buy-to-let property near their child’s university to cut costs during their student years.
Faced by high fees and rising rents, 66% of parents believe these properties are a sound investment, according to online mortgage broker Trussle, while 53% would even consider downsizing to help support their children through university.
It reports that student buy-to-lets consistently outpace the rest of the PRS market by as much as 17.86% in rental yield.
For those contemplating a buy-to-let property near a university, the broker has identified those towns and cities that offer the best returns, using the Times Higher Education guide to calculate property prices and rental yields in the top 30 universities across the UK.
Offering the most value for money, Belfast topped this list with an average house price of £152,175, followed by Aberdeen (£154,480) and Dundee (£174,173).
Miles Robinson (pictured), head of mortgages at Trussle, says the data shows that property is still seen as a safe and reliable way of generating extra income.
“This can be both in the short term, through rent collection and long-term gains in house prices,” he explains. “In addition, the low-interest climate means would-be landlords can lock-in a competitive buy-to-let mortgage, which is typically interest only.”
Trussle has found that there are currently more than 10,000 buy-to-let deals on the market from 71 lenders, with interest rates as low as 1%.
Read more about student lets.