The Best University Cities for Buy to Let Properties

The UK is known around the world for its academic excellence and the quality of its universities. With a student population of over 2.3 million, more and more property investors are considering students as a lucrative new market. There are plenty of student cities in the UK that are providing profitable opportunities for buy to let investors, and so here are some of the best.

1. Liverpool

Liverpool has a long reputation as a thriving university city, with a student population of over 70,000. This northern city is home to world class institutions like the University of Liverpool, Liverpool John Moores University, Liverpool Hope University, LIPA and Edge Hill University. Major investment and regeneration programmes have been key to the city’s growing appeal as a student destination, with the new Knowledge Quarter providing a key focal point for students, research and science. The Knowledge Quarter currently has £1 billion of new developments underway, with a future £1.8m sq ft of space dedicated to education, health, technology and science including Paddington Village, Liverpool Science Park, Sensor City, Liverpool Bio-Innovation Hub and the Fabric District. Property investment companies like RW Invest have recognised the potential of this area with high end new developments like One Islington Plaza and the Fabric District residence offering investors high returns in this booming area of the city. Liverpool also has some of the highest rental yields in the country, with three of the UKs top ten postcodes for buy to let property investment. The city’s L7 postcode has an average rental yield of 11.79% and L6 has an average of 11.52%, coming first and second in the UK.

2. Manchester

Another flourishing university city is Manchester, which has one of the UK’s biggest student populations at almost 100,000 students. With four universities in the city, Manchester has seen a huge rise in investment in Purpose Built Student Accommodation. Manchester also boasts one of the fastest growing economies in Europe with countless opportunities for employment after graduation leading to an impressive student retention rate. Manchester was also on the best buy to let postcode list, with the M14 area gaining average rental yields of £1,636 and an average yield of 10.08%. Often called the UK’s second capital, Manchester is home to a variety of businesses, institutions and amenities which make it even more appealing to both students and investors. It has also experienced major regeneration efforts, which can be seen in Salford, St Johns and Ancoats, further increasing the city’s reputation.

3. Leeds

The other university city that buy to let property investors should consider is Leeds, which has a student population of around 60,000. Leeds is one of the UKs strongest economies, with many well known companies based there and the strongest financial sector outside of London. With over £2.6 billion of major property schemes completed in the city centre over the last ten years, Leeds is growing quickly, along with its student appeal.  Leeds is well known for its nightlife, arts and shopping – which means that there is plenty to do for prospective students. Property investors are also seeing record rental rises and rents are forecast to increase by 22.2% over the next five years, the highest rise in the country.