85% of top postcodes for BTL rental yields are close to a university campus

Over four-fifths of the best postcodes for current rental yields (85%) are within close proximity to a university campus, according to the latest research.

Lettings platform Howsy has revealed that Bradford’s BD1 postcode — where BTL landlords can secure yields of 10.2% — was the best university investment option in the UK.

The average house price in the area was £54,938, while the average monthly rent was £468.

Other highlights from the research included:

  • Sunderland’s SR1 was the next best university postcode (yields of 9.4%), followed by Liverpool’s L7 (9.3%)
  • the TS1 postcode close to Teesside University had yields of 9.2%, while Liverpool’s L6 had yields of 9.1%
  • other towns which performed well in terms of yields included Grimsby (DN31), Edinburgh (EH8), Pontypridd (CF37), Glasgow (PA3, G21, G52 and G14), Manchester (M14), Newcastle (NE6), Leeds (LS6) and Nottingham (NG1)

“[Students] bring consistent demand via an annual flow of new arrivals, the void periods are generally much shorter, and the supply-demand imbalance puts the landlord in control when choosing a tenant,” said Calum Brannan, founder and CEO at Howsy.

“As a result, these hot pockets of BTL demand offer landlords an investment option that is almost certain to provide a healthy return despite slower market conditions and uncertain times in the BTL market.”

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