During the first national lockdown, the UK property market was completely closed as people had to stay at home to contain the spread of COVID-19. Photo: Matt Cardy / Getty Images
The University of Southampton has been named the UK’s Best University for Buying Property Investing.
This comes from the student accommodation platform UniHomes, which looked at the top universities that offer the best option for landlords in the student sector.
It analyzed market data from the top 50 UK universities to find out which offers the most profitable purchase investment based on the current average rental return in each university zip code.
The University of Southampton at zip code SO17 had an average house price of £ 226,489 ($ 307,764) while the current median rent is £ 1,388 per month.
As a result, a buy-to-let in the university’s zip code currently offers an average rental return of 7.4%.
Nottingham was the second best choice for a profitable investment in the buy-to-let sector. The University of Nottingham’s NG7 postcode achieved an average rental return of 7%, while Nottingham Trent’s NG1 postcode was slightly lower at 6.7%.
Zip code NE1, where Newcastle University is located, is also in the top 5 with an average return of 6.3%, along with the University of Dundee (6%).
The universities of Cardiff (5.9%), Leicester (5.9%), Strathclyde (5.8%), Kent (5.8%) and Warwick (5.7%) are also among the top 10 buy-tos -Let universities.
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Phil Greaves, Co-Founder of UniHomes, said, “It’s no secret that a number of legislative changes, including tax breaks and increases in stamp duty, have severely impacted profitability in the buy-to-let sector. Since many are also financially affected due to the current pandemic, many landlords also have an impact on their rental income.
“The good news, however, is that despite the current landscape, the demand for higher education and student accommodation remains high as many continue with their curricula with a view to life after the pandemic.
“As a result, the student housing sector has continued to provide steady demand for many landlords so they can avoid prolonged idle periods. Additionally, many students finance their living conditions through a student loan and therefore do not present the financial unpredictability that many are currently experiencing in the regular rental market. “
The story goes on
UniHomes works with landlords in 25 UK cities and promotes their property portfolios to generate inquiries from students. The platform founded by Phil Greaves, Bradley Cox and Luca Mori is self-financed without external investments.
During the first national lockdown, the UK property market was completely closed as people had to stay at home to contain the spread of COVID-19. This included commands to avoid moving as well as postponing the home inspection. A number of construction sites have also been temporarily closed.
As restrictions eased later in the year, Chancellor Rishi Sunak announced a suspension of stamp duty on property sales of up to £ 500,000 through March 2021.
The UK property market is expected to cool off this spring as the stamp duty ends and the existing help-to-buy system rejuvenates.
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