With the majority of university towns seeing stiff competition amongst students for rented accommodation, many parents are looking at the pros and cons of purchasing a property for their child to live in while studying.
New research from landlord Mortgages, the UKs largest specialist buy-to-let broker, shows that parents who choose to buy could make a profit of almost £20,000 over the three-year term of their childs degree.
And parents whose children choose to study in London can make the most profit if they choose to buy and rent out two of the three bedrooms.
However, parents of students in Guilford, Bath and Bristol can also expect to see healthy profit of over £10,000 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.
More than anyone else, it is the student who knows what their peers want, and in their child, parents have the most qualified researcher.
Purchasing a property for your child while they are at University also holds other advantages such as control over the security of their accommodation, type of flat mates and level of rent.
Owning a property your child shares with other tenants also means that they can act as your agent on the ground and solve any issues as and when they occur.
And the property doesnt need to be sold once the child has left university as, if the parent chooses to, they can continue to let it out to students and use it as a long term investment for their retirement.
Grandin said: It is true that property prices are high, particularly in London. However there is still definite scope for profit, with predicted house price growth and steady rental yields.
These two factors combined make for a solid investment and one well worth considering before your child starts down the road to higher education.
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