Landlords do better with student properties

The average student landlord sees higher yields than an investor in the general market.

According to research by Paragon mortgages, buy-to-let investors in the wider market see average yields of around 5.6 per cent.

Student landlords however, see yields of around seven per cent and are benefitting from strong demand.

Paragon pointed out that if a student landlord invests in the right area, he or she is likely to see very impressive returns.

Nigel Terrington from the firm also highlighted the fact that the days of students trashing their accommodation appear to be a thing of the past.

"Despite the 'Young Ones' image of students being rowdy and destructive tenants, the reality of modern student lets is quite different. The days of grants have long gone and students are more focused to make the most of their student debt-financed opportunities," he commented.

"Whilst there will always be a social element to university, students are looking after the property better to avoid losing deposits and incurring costs for repairs and replacements.

"A significant element in this is that the quality of student sector property stock is in considerably better condition than it was in the past due to a combination of increased investment by landlords and stronger regulation," added Mr Terrington.

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