Manchester is among the top ten locations in the UK for student property investments, according to recent research from Zoopla.
The findings showed the best university cities in the country to buy a student property in accordance to the average yields produced in that area for this type of accommodation in the 12 months leading to August 2013.
Manchester was shown to achieve typical rents of £1,053 for a four-bedroom house marketed at students. This provides a gross yield of 4.59% for investors, which is among the highest yields in the country.
Typical average asking prices for a four-bedroom property is £275,132, meaning investors can purchase a buy-to-let (BTL) home for a reasonable cost, thereby limiting how much they spend on their mortgage and increasing the amount of rental income they can count on as profit.
Lawrence Hall of Zoopla advised landlords to do their research before making an investment, saying: “[They] need to take into account the student demand, property supply, average property values and average monthly rents.”
He added that it is not just a case of the universities with the largest number of students providing the greatest investment returns.
Among other cities listed in Zoopla’s top ten BTL locations for student investments is Bristol, which accrues an average rent of £1,224 for a four-bedroom home, producing a yield of 4.29% with the price for this type of property typically being £342,699.
Vita Student offers luxury student accommodation in both Manchester and Bristol, providing yields of 7% assured for five years, which is above the average for university property investments for these areas.