If you are considering investing in a student buy-to-let, you probably would like to know which university towns and cities are the best places to invest in?

This study by money.co.uk analysed the number of dwellings in each UK region in comparison to the total number of dwellings occupied by students to reveal the most lucrative regions to become a student landlord.

The UK regions with the most student housing investment by private landlords

Rank

Local Authority

Region

Total Properties

Student Properties

Student Properties (%)

1

Exeter

South West

59,329

6,479

10.92%

2

Nottingham

East Midlands

142,675

15,422

10.81%

3

Newcastle upon Tyne

North East

136,635

10,470

7.66%

4

Oxford

South East

62,490

4,569

7.31%

5

Leicester

East Midlands

142,003

10,233

7.21%

6

Canterbury

South East

69,376

4,095

5.90%

7

Cambridge

East of England

58,993

3,028

5.13%

8

York

Yorkshire & the Humber

92,114

4,578

4.97%

9

Sheffield

Yorkshire & the Humber

255,248

12,330

4.83%

10

Southampton

South East

109,902

5,182

4.72%

The English local authority where student property makes up the biggest share of the total property market is Exeter. Here over one in ten properties are occupied by students. The high proportion of students living here means that Exeter is potentially a very lucrative market when it comes to student property investment.

Second is the city of Nottingham, which has a large student population of over 60,000, with 10.81% of properties occupied by students. Nottingham has the highest concentration of higher education providers in the East Midlands, home to three different universities: the University of Nottingham, Nottingham Trent University and the Nottingham campus of the University of Law.

Third place, albeit some way behind second, goes to Newcastle upon Tyne, where 7.66% of properties are occupied by students.

7 Tips When Buying Student Property

  1. Make sure to budget for the extra wear and tear that comes with student properties. You’ll probably need to pay for professional cleaners when each group of tenants moves out.

  2. You’ll also need to budget for furnishings and white goods, as student properties are expected to be furnished.

  3. Make sure that you’re investing in an area with lots of students (such as those outlined in the research below), and look into potential rental yields. Many of the best yields are in university towns in the North, where property is usually cheaper.

  4. Do your research around HMOs (houses in multiple occupation). These are properties with three or more tenants from different households and have their own sets of rules that you must abide by. You’ll probably need a special licence to let one of these.

  5. You’ll also have to take this into consideration when it comes to insurance, making sure that your policy fully covers an HMO.

  6. Make sure that your tenancy agreement is watertight and covers all the bases such as how much notice is required if tenants want to move out.

  7. Consider asking for guarantors before reaching an agreement. You may even ask each tenant to provide their own guarantor.

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