The University of Edinburgh offers the best rental yields for properties nearby
The University of Edinburgh is the university that offers the best rental yields for properties surrounding the main campus, flat-sharing website ideal flatmate has revealed.
An analysis of data from PropertyData showed The University of Edinburgh provides yields upwards of 7%.
Nottingham Trent University, The University of Leicester and The University of Dundee also offer the best options in terms of rental yields for UK landlords.
All four provide yield upwards of 7%, while Liverpool follows these investment hotspots with a 6.94% yield.
Tom Gatzen, co-founder of Ideal Flatmate, said: “Although some of the country’s best universities are situated in London, they prove somewhat problematic for tenants and landlords alike with high costs making it hard to rent but also minimising the return on investment for landlords.
“So-called ‘university towns’ like Leeds, Nottingham and Warwick – where such a large percentage of the population are students – tend to be reliable for landlords in terms of yield, as they offer consistent demand and short vacancy periods which provide a consistent income stream.
“As for tenants – especially students – living around some of the very best unis in the UK outside of London is fairly affordable, especially when you consider that they are most likely to be sharing with a number of friends.
“Flat sharing is a great way to cut costs for any student tenant without them having to forsake their first-choice university and it’s also a great way to make new friends for life while setting you up for surviving in the ‘real-life’ rental market once you’ve graduated.”
Leeds also makes the top 10 with rental yields at 6.80%, followed by Strathclyde (6.64%), Northumbria (6.58%) and Newcastle (6.58%).
Aberdeen completes the top 10 and is not only one of the most affordable for students but brings the 10th best return on a buy-to-let investment with yields at 6.22%.
Cambridge – the UK’s top-ranked university – and second-placed Oxford neighbour each other in the lists of most expensive average rental prices.
Rent costs in the surrounding areas of the two universities are among the worst in the country for tenants, with the average rent price around the University of Cambridge working out at £1,491 per month, barely cheaper than the University of Oxford’s £1,495 per month.
High rents don’t always mean a good return for landlords and despite rental prices surrounding the campus of LSE, King’s, Imperial, SOAS and University College being some of the highest in the UK, they are five of the six worst in terms of yield.
LSE and King’s offer the joint lowest yield at 2.04%, followed by Imperial with 2.52%, while the University of Bristol joins both University College London and SOAS University of London with yields of just 2.94%.
Lancaster University is the university with the cheapest average rent price surrounding the main campus. The university, ranked as the seventh best in the UK, has an average monthly rent of £598.
It was closely followed by the University of Aberdeen, where the average rent per month is £602.
While the University of Lincoln is ranked at the back end of the top 50 for performance at 42, it joins top 10 universities Loughborough and Durham in rounding out the best five universities for affordable rental prices for tenants.
The average monthly rent cost around Lincoln comes in at £628, followed by Loughborough at £689 per month, just narrowly ahead of fifth-ranked Durham’s £693.
Nottingham (£728), Leicester (£737), Swansea (£767), Dundee (£784) and Liverpool (£784) also make the top 10 for the most affordable rental prices surrounding the top 50 university campuses.
At the other end of the list is the UK’s fifth-best university, Imperial College London, where the average monthly rent cost surrounding the main campus costs £4,142, proving incredibly expensive for students in particular.
The London School of Economics and King’s College London are tied as two of the worst universities for tenant rental affordability around the respective campuses, with rent working out at £3,159 per month on average around both universities.
University College London and SOAS University of London are also tied with an average rental cost of £2,431, meaning the top five worst universities for tenant rental affordability are all in London.