Leeds and Manchester are top buy-to-let locations for parents of undergraduates

Northern cities Leeds and Manchester offer the best buy-to-let property investment opportunities for parents of undergraduate students, according to research.

Both areas have an average rental yield of 6%, a study of house price and rental yield data from home.co.uk, analysed by Urban.co.uk.

Next up is Sheffield (5.3%) followed by Plymouth (5%) and Canterbury (4.7%).

The next six top performing areas are all located in the South of England or the Midlands.

As well as in private lets, the average rental level in purpose-built student accommodation has also continued to rise considerably.

According to Unipol Student Homes and the National Union of Students' Accommodation Costs Survey, the average rental cost for a student on a three year course could now eclipse £23,000.

Buy-to-let offers parents with 'buying power' the perfect opportunity to control their children's rental costs while also making a long-term investment, says Urban.

The agency's co-founder, Adam Male, comments: “Universities in the North are incredibly popular, and for parents with children studying in the area, this region presents itself as a prime place to invest, particularly as student rental fees continue to climb.”

“With massive transport investments planned for these areas as well as more businesses moving to the North, a buy-to-let in these areas is not only likely to offer short-term financial gains, but a really solid long-term investment too.”