Swansea tops list for student let yields
Time to invest in student HMOs?
Student let properties in Swansea have been found to generate the highest rental income, with an average yield of 9.56% and the average price noted at £231,534, according to research from Paragon Bank.
Towns and cities with just one university delivered some of the best yields, with seven of the top 10 only having one main higher education institution.
According to The Mistoria Group, "investors achieve considerably higher yields with property let to students, compared to those let to non-students in the same town or city.
“For example, student landlords in Liverpool made an average Gross rental yield of 13% in the third quarter of 2021, compared to 9% for those who did not let to students.
“Student property can either be similar to a normal buy-to-let, where the whole property is rented between friends who co-habit, or a student HMO where students rent each room individually on their own tenancy agreement.
“A property is deemed an HMO if at least three tenants live there, forming one household and sharing bathroom or kitchen facilities with one another.
“Investors can currently acquire a four bed HMO for students and professionals, fully refurbished and furnished and tenanted for the coming year, for less than £175,000 in Liverpool.
“Investing in student HMO accommodation offers a long-term investment option, as the property is highly likely to be in constant demand throughout the calendar year.”
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Towns and cities with just one university delivered some of the best yields, with seven of the top 10 only having one main higher education institution.