According to the latest moneyfacts.co.uk survey, university dwellings provide above average returns.
The Halifax House Price Index revealed that the average rise in property prices across cities and towns of the top twenty performing universities over the past five years was 88 per cent.
Lisa Taylor, Business Moneyfacts Editor, said: The reasons for parents purchasing buy-to-let property for their university-bound offspring are obvious.
By buying a house and letting any spare rooms, the rent should cover the mortgage repayments and possibly more and provide rent-free accommodation for their child.
However, parents should be aware of the rapidly growing red tape they need to comply with.
The grace period for House of Multiple Occupancy (HMO) licensing has expired, so any new qualifying property purchaser will need to comply or face fines of up to £20,000.
The standard HMO criteria lists a three-storey property, with five or more tenants from two or more families sharing bathroom or kitchen facilities.
However, as individual councils can choose the criteria, or implement selective or discretionary licences, it is essential that you do some homework first.
Taylor said: Not only does the criteria and application process vary, but just as importantly, so does the cost. Recent figures indicate fees can range between £100 and £2,000 a most unwelcome extra cost, at a time when the children are already pulling hard on the purse strings.
Get a free guide to buy-to-let here.
