University cities deliver best yields for buy-to-let investors

University cities deliver best yields for buy-to-let investors

A recent report by leading credit report company TotallyMoney has revealed that university cities delivered the best yields for buy-to-let investors. In a survey of over 580,000 properties across England, Wales and Scotland, TotallyMoney ranked the top performing postcode locations. Here are some of the key findings from the survey:

  • Nottingham topped the charts with two postcodes featuring in the top 5 locations. NG1 ranked highest with average rental yields of 11.99%. NG7 took fifth place with an average yield of 8.89%
  • With a student population of over 37,000 property prices in Nottingham are also more affordable compared to other parts of the UK. Average prices are £152,631 in NG1 and £160,269 in NG7. This compares to the UK average of £226,906.
  • Liverpool took second place in the charts with five postcodes appearing in the top 20. With a student population of around 70,000 and boasting three universities, it is not surprising that Liverpool has performed so well.
  • L7 was the highest ranking Liverpool postcode enjoying yields of 9.79%. L1 also performed well with average yields of 9.33%
  • Newcastle took 6th place in the charts with the NE6 postcode achieving average rental yields of 8.43%. With average property prices here at £118,789 they are well below the UK average. The proximity of Newcastle and Northumberland Universities has had a positive effect.
  • NE1 in Newcastle has also performed well achieving yields of 8.16%.

Commenting on the survey, Mark Moloney, Head of Brand and Marketing Communications for TotallyMoney, said: “With students flocking to university cities year after year and looking for a place to live, it’s no surprise the student market is a dependable one for landlords.”