Durham is best-earner among student buy-to-lets

Buy-to-let landlords who let properties in student towns can earn higher returns than others on the market, with a new report finding that rental yields in Durham are the highest of all.

New statistics released by Landlord Mortgages show that the average rental yield for buy-to-let investors in the UK is 5.42 per cent, while this figure rises to 6.59 per cent for properties in towns with a high presence of university students.

The figures also showed that landlords in Durham received the highest rental yields of all, at 9.12 per cent, meaning that they can earn up to £10,450 a year from the combined rents of three students.

Next best earners in the survey were buy-to-let landlords in Nottingham, Stoke, Sheffield and Blackpool, with yields all close to or above seven per cent in these places. Investors in student accommodation in Devon, Cheltenham, Guildford, Pontypridd and Crewe were found, however, to earn far lower yields, with buy-to-let properties in the latter drawing a return of just 3.4 per cent.

Lee Grandin, managing director of Landlord Mortgages, commented "Students can be a profitable bunch to rent to - providing you choose the correct location.

"Average rental yields in England are currently 5.42pc, so investors who choose to rent to students can make far higher returns."

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