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  • Property Yields

    High student population = high yield



    Research released this morning reveals that university cities offer some of the highest buy to let yields in the country.

    The Free Credit Report company surveyed over 580,000 properties across England, Scotland, and Wales to rank postcodes by their buy to let yields.

    The research showed locations with a high student population — like Nottingham, Liverpool, Manchester, Leeds, and the North East — boast some of the UK’s highest rental yields.

    Nottingham has two postcodes featuring in the top five. NG1 takes first place with an average rental yield of 11.99 per cent and NG7 takes fifth place with an average yield of 8.89 per cent.

    Full/source article

    If you are a landlord in these cities, are you finding this an accurate portrayal of what his happening in your local area?

    SEE ALSO  -        I'll show you my yield if you show me yours!

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    Here's how our top six postcode districts for yield looks at the moment - slightly different order but NG1 and NG7 also feature, with similar numbers:


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    Michael Dent
    Landlord and Founder of PropertyData.co.uk
    Believer in a data-driven approach to property investing

    It would go hand in hand that cities with a higher percentage of student population would have high yields.  Typically most students live in houses which are rented room by room thereby genenrating the maximum yield that asset could generate.

    A great scenario could be is to buy in any area where it is currently not dominated by students but in the future does become a student area therefore pushing up what you can achieve from rent.  (Subject to the property being unencumbered/the mortgage companies satisfaction)

    We find Sunderland to do quite well as it is not a commonly mentioned BTL hotspot.

    There are some awesome opportunities out there and it is a fantastic time to be buying property.

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    "We find Sunderland to do quite well as it is not a commonly mentioned BTL hotspot."

    As Sunderland Uni is #99 on the list, there may be a reason why it's not commonly mentioned?

    https://www.thecompleteuniversityguide.c...s/rankings

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    Sunderland only a few miles from Horden (former mining town where mine closed 1987) and where last year a Housing Assoc sold 170 3 bed social houses as nobody wants to live there - average sale price per unit £17k

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    Did not realise Sunderland University was so low ranked as a University.  I was referring more just as a buy to let hotspot.  Sunderland is not mentioned much as a buy to let hotspot.

    LandyLordy makes a very valid point- areas with a high density of social housing can sometimes come with more hassle.  Horden which is SR8 has no properties for sale on our platform as we have deemed it not the best of choices for investment.

    I wonder how Sunderland will perform over the next 5-10 years.  I know Property Tribes are celebrating their 10th Anniversary Soon.  Would be interesting to have throwback posts like this to see how predictions work out in another 10 years time.  At the 20th Birthday Party!

    Currently as things stand:-

    £40, 000 3 Bedroom property in Sunderland

    25% deposit                                                 = £10,000

    Would give a mortgage payment @1.94%  = £48.50

    Rent of around                                                £600

    It gives plenty of margin of safety.

    Over 5 years you would take a gross rental profit after mortgage costs of £33,090

    We are not advocating that everyone go and buy property in Sunderland but for a local who wants to get into the market at that entry level.  It could be a fantastic opportunity.

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    There's not many reasons to suggest Burnley is a BTL hotspot either unless picking up properties for £20k is your thing.

    Looking at SR8 is like looking at BB11 - nothing has changed this side of the millenium and the question is, what can be put in place to make it change for the better?

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