North East locations provide best returns for university buy-to-let investments

University locations in the North East of England provide landlords and property investors with the best returns, according to new data. 

As a new cohort of students prepare to start university, Property Partner reports that Sunderland is the number one location for investors looking to purchase student property. 

The city provides an average net rental yield of 6.9%, as well as a relatively low average property price. 

Second spot in the list of student investment hotspots is Middlesbrough, home to Teeside University, with an average net annual yield of 5.9% and an average house price of just over £55,000. 

The North East powerhouse is made up by Newcastle, which came eighth in the list. The Tyneside city provides the average investor with a net annual yield of 4.3%.

The top five was made up by Birmingham, Salford and Edinburgh, with Manchester, Nottingham and Coventry also providing attractive returns for student landlords. 

In the capital, the picture is very different with yields squeezed after years of accelerated property price growth.

Property Partner, which compiled the ranking using its own data as well as figures from Zoopla and home.co.uk, reveals that six of the bottom ten ranking universities for rental income are located in London.

“In this era of ultra low rates and high market volatility, stable investments which provide a reliable income, and medium to long-term capital growth prospects are the holy grail," says Dan Gandesha, chief executive of Property Partner.

Yesterday, LendInvest released a similar index which also ranked Sunderland as the top investment location for buy-to-let student property. 

Source: Property Partner, median rent figures courtesy of Home.co.uk and average price paid figures courtesy of Zoopla