Buy-to-let
Cook said: “Obviously it’s going to be seen as a good investment from the parents’ side of things,” noting that it was one way of getting them on the housing ladder.
He added that such purchases were sometimes made for ‘social reasons’ to avoid the student having to live in student accommodation, while letting the property to other students once the university career of their offspring ended was another option which arose.
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The popularity of the buy-to-let option may be enhanced by recent studies showing that this sector brings higher yields than buy-to-let as a whole.
A recent study by buy-to-let lender Paragon found that landlords with student lets in their portfolios enjoyed average yields of seven per cent, compared with 5.6 per cent for those who did not.
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