Competition amongst students for rented accommodation is rife in most university towns so it would be wise for savvy parents to investigate the benefits of purchasing a property for their child to live in while studying.
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New research from Landlord Mortgages, the UKs largest specialist buy=to-let broker, shows that parents who choose to buy could make profit of almost £32,000 over the three-year term of their childs degree.
Parents who choose to study in Edinburgh can make the most profit if they choose to buy and rent out two of the three bedrooms (32,527).
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However, parents of students in London, St Andrews and Bath can also expect to see healthy profits of over £19,000 in just three years.
Lee Grandin, Managing Director of Landlord Mortgages, said: With stiff competition for rented accommodation in university towns, investors are faced with a captive audience, meaning that this type of buy-to-let investment can prove highly profitable. Rather than fork out to line the pockets of canny landlords, buying for your childs higher education has three fold benefits; potentially making a handsome profit, security in the knowledge your child is living in good accommodation and choice over your childs flat mates.
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With property prices steadily rising, particularly in Scotland, there is clear scope for a high return on investment. Rental yields remain steady so student property will definitely make a solid asset and one will worth considering before your child flies the nest to start their higher education.
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