11 Jul

'Location' important for student houses to rent in Manchester

'Location' important for student houses to rent in Manchester

Buy-to-let investors hoping to enter the student market with property to rent in Manchester need to consider both location and product, it has been claimed.

The market in some areas may have matured and saturated, according to Savills.

Considering what type of rental homes are needed in a target area is important to offer something different in the sector, the property firm claims.

Manchester has two universities based in the city centre, as well as Salford University in Greater Manchester, meaning demand for student accommodation is high.

Marcus Roberts, director of student investment and development at Savills, noted that funding is also important to avoid a shortage of student lets.

He explained: "Banks are certainly tightening up on who they lend to and the criteria upon which the developer has to provide before they will lend any development funding."

Paragon has revealed that student tenants promise the best rental yields to landlords, averaging 6.45 per cent.

Young singles can also prove profitable for investors, with an average of 6.22 per cent yield.ADNFCR-1222-ID-800617999-ADNFCR

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