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Students provide landlords with market-beating yields

student-letting-investments-landlords-association-newsResearch from Simple Landlords Insurance shows that landlords willing to rent to students are capturing yields that in some places are significantly greater than the market average.

The insurance company compiled a league table that shows top entrants Durham, Warwick and Manchester student digs providing 11.53 per cent, 10.25 per cent, and 8.48 per cent yield respectively, figures arrived at by comparing the rental price advertised for student houses on popular roads with estimated property values.

Simple provides an example of a four-bedroom house in Chailey Road, Brighton, commanding £2,200 per month when rented to students, as compared to £1,325 on the open market.

However, a poll revealed that 79 per cent of landlords avoid student tenants.

Simple Landlords Insurance director of underwriting Tom Cooper says: “There are some great investment opportunities for the minority of landlords who are prepared to rent to the student market. And it’s not as risky a move as you might think.

“Often students don’t deserve their bad reputation. With university fees today’s students take their studies much more seriously, and many also work to see themselves through the semester. It’s not quite the hard-partying picture many have of student life.

“In fact we’ve recently increased the discount on landlord insurance for properties let to students on the back of analysis carried out by our underwriters, which would suggest students just aren’t the reckless tenants many believe them to be,” he adds.

Source; By Gary Adams – mortgagestrategy

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