Glasgow tops list of best student property investment destinations
September 25 2013
The city beat northern rivals Hull and Manchester to the top spot on the basis of the gross yield achieved by landlords of 4.95 per cent, calculated from the average monthly rent of a four bedroom property (£1,083) versus its purchase cost (£262,888).
A boom in student development in recent years has seen a spate of developments take place in student hotspots such as the west end and city centre, with investors pouring cash into the sector.
Zoopla’s Lawrence Hall said: “The largest number of students or most prestigious university clearly isn’t necessarily best for investment returns. Landlords need to do their research and take into account the student demand, property supply, average property values and average monthly rents.
"There is no apparent North/South divide when it comes to student buy-to-let investments and a number of towns in the North are showing higher gross yields than the South as a result of property values having remained lower over the past few years whilst rental demand has increased.”
Top 10 student buy to let cities
1. Glasgow
2. Hull
3. Manchester
4. Cheltenham
5. Cambridge
6. Buckingham
7. Luton
8. Bristol
9. Lincoln
10.London
2 Comments
#2 Posted by Neil C on 25 Sep 2013 at 17:28 PM
Well said, Wonky. Some of the student accommodation approved by GCC's planners in recent years has been abysmal (those vile blocks halfway up High Street, for instance). We don't want anyone coming to Glasgow and being housed in cramped, badly-designed or unnecessarily poor-quality student accommodation.
If people make a profit on student housing, good for them, but the council needs to rein in investors who are solely interested in making a quick buck.
If people make a profit on student housing, good for them, but the council needs to rein in investors who are solely interested in making a quick buck.
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Other public/private organizations should be investing in schemes that stipulate a limited-flexible contractual time frame for student accommodation with a view to future implementation for residential use ( depending of course on potential future demand for urban living).
GCC has to be firmer in its insistence upon premium quality high density design within the city centre/westend nexus. This commitment to high quality will of course be largely dependent upon a robust market and high demand.