Insurance News Archive

Investors 'should turn to student properties'

Those wishing to make high rental yields from their properties should buy homes in student hot spots, it has been claimed.

According to the Property Investor Show, people letting houses in Manchester, Hull and Bangor will make the biggest profits - the three towns have an average yield of more than seven per cent.

Nottingham was found to be the best place to purchase rental property - the average yield there is 10.9 per cent - because of its high student population, low property prices and high rents.

Durham was the second most-profitable area, with a three-bed house for three students making 9.23 per cent.

Managing director of the Property Investor Show Nick Clark said student accommodation and low house prices represented a "great opportunity" for buyers.

However, he warned investors that in the short term they would not see any appreciation of the property in terms of capital growth, instead cash-rich property owners should see the opportunity to gain profit from rent.

Earlier this week, the Royal Institution of Chartered Surveyors said the rental market was "booming" because of low mortgage availability.

22 Aug 2008