A majority of parents – 66% – asked by Trussle say they would consider buying a buy-to-let (BTL) near their offspring’s university to help with living costs.
The survey of 2,000 homeowners with children carried out by the broker also reveals that 53% of parents would considering downsizing to help with living costs.
Trussle collected data from Zoopla to show that Newcastle currently offers the highest amount of rental yield from a student property. With an average house price of £192,567 and average monthly rental income of £1,508, this equates to a yield of 9.40%.
And Southampton comes next, with the average house price at £235,911 and monthly income of £1,757 – an 8.94% yield.
“It’s true that BTLs aren’t the bargain that they once were,” says Trussle head of mortgages Miles Robinson.
Robinson mentions changes to tax and the stamp duty surcharge as reasons why BTL is no longer “the king of investments.”
He continues: “However, this new data shows that property is still seen as a safe and reliable way of generating extra income.
“This can be both in the short term, through rent collection and long term gains in house prices. In addition, the low interest climate means would-be landlords can lock-in a competitive BTL mortgage, which are typically interest-only.”
