2
Oct
Buy to let landlords see higher yield on student tenants
Buy to let landlords renting their properties to students can
expect rental yields of up to 25 per cent higher than those who
rent to other demographics, new research has revealed.
According to figures from mortgage broker Landlord Mortgages, buy
to let landlords whose property portfolio is most composed of
student tenants see an average rental yield of round 8.6 per
cent.
This compares with a yield of just 5.6 per cent for those who do
not.
Commenting on the figures, Nigel Terrington of Paragon Mortgages
said that the high demand for property from students means that
student properties are relatively easy to let.
He said: "Most student landlords will have let their property for
the following academic year by early spring due to strong level of
tenant demand and the competition between students for the better
quality properties is fierce.
"Strong tenant demand in the student market is driving yields in
that sector. If landlords select the right type of property in the
right location, the returns from the student market can be
extremely healthy," he added.
Students make up 12 per cent of lettings in the buy to let market,
Landlord Mortgages showed.
