LJMU Postcode Offers High Rental Yields
Northern England offers the most lucrative student property investment opportunities, research shows.
As a buy-to-let investor, high rental yields and good-value properties should be high on your list of priorities.
Let’s look at what the latest data reveals for the property investment market
Top University Postcodes for High Rental Yields in the UK
In research from easyMoney, university postcodes in northern England and Scotland offer the best rental yields for property investors.
The data ranked the top 100 UK universities based on yields calculated for property valuations and rental figures.
The findings found that Liverpool John Moores University, University of Sunderland and University of Aberdeen were the top three student areas for rental yield.
LJMU, part of the L3 postcode, offered rental yields of 8.9%. In contrast, the UK average sits around 5.2%.
Read our updated guide for more on Liverpool buy-to-let investments.
Student Property Investment Offers High Potential Capital Gains
Jason Ferrando, chief executive of easyMoney, said:
“Landlords can get nervous when renting to students, but they provide you with a solid stream of income year-on-year that should more than pay for the potentially higher maintenance costs.
“The strongest yields are around universities in either the North of England or Scotland, where low house prices make it easy to turn a solid profit.
Buy-to-Let Properties Near Universities Usually Have Higher Yields
On average, yields in university areas are 5.4%. As the LJMU postcode yield shows, some places offer much higher rental returns.
Regional differences in the UK housing market show that northern university postcodes perform better than their southern counterparts.
For instance, the lowest yields for student property areas were found near the University of Worcester (2.7%), King’s College London (2.9%) and Imperial College London (2.8%).
In addition, Oxford and Cambridge’s university areas also have a lower yield than the national average at 4% and 4.6%. This is due to the high property prices in those areas. Landlords will always struggle to reach a healthy yield on expensive homes, even when they charge higher rents.
For the latest UK House Prices, read our 2023 guide.
Should You Consider a Property Investment in Liverpool?
The data shows that Liverpool offers some of the highest rental yields for student areas.
The HM Land Registry UK House Price Index shows that the average Liverpool property price stands at £177,224.
Meanwhile, the Homelet Rental Index puts the average North West rent at £1,006 PCM. This puts the average Liverpool rental yield at 6.8%.
Liverpool John Moores University is in the heart of the city’s Knowledge Quarter. This area has become an innovation hub with over £1 billion in regeneration investment. The focus has been on science, technology, education and medicine – the area is also home to the Royal Liverpool Hospital.
The L3 postcode is home to LJMU and the University of Liverpool. The city itself welcomes 70,000+ students every year. This is one of the highest student populations in the country.
With a substantial potential tenant base, regeneration and innovation throughout the city and excellent-value property prices, property investors may see significant capital gains with a student buy-to-let opportunity in Liverpool’s city centre.
Interested in sustainability and the property market? Learn more with our Liverpool Regeneration 2023 guide.
