2 Oct

Buy to let landlords see higher yield on student tenants

Buy to let landlords see higher yield on student tenants

Buy to let landlords renting their properties to students can expect rental yields of up to 25 per cent higher than those who rent to other demographics, new research has revealed.

According to figures from mortgage broker Landlord Mortgages, buy to let landlords whose property portfolio is most composed of student tenants see an average rental yield of round 8.6 per cent.

This compares with a yield of just 5.6 per cent for those who do not.

Commenting on the figures, Nigel Terrington of Paragon Mortgages said that the high demand for property from students means that student properties are relatively easy to let.

He said: "Most student landlords will have let their property for the following academic year by early spring due to strong level of tenant demand and the competition between students for the better quality properties is fierce.

"Strong tenant demand in the student market is driving yields in that sector. If landlords select the right type of property in the right location, the returns from the student market can be extremely healthy," he added.

Students make up 12 per cent of lettings in the buy to let market, Landlord Mortgages showed.

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