Parents are increasingly stepping in to help their children avoid high rental costs at university by investing in a property close to where they are studying, according to mortgage broker Alexander Hall. However, where offers the best returns to invest varies.

In its research, the company analysed the monthly cost of a mortgage across each postcode of the top 100 UK universities and then compared it with the average monthly rent.

It found that the University of Sunderland boasts the lowest average monthly mortgage cost. The average house price in the SR1 postcode is £59,454, with a 15% mortgage deposit totalling £8,918. With a mortgage loan required of £50,535, this means the average monthly full mortgage repayment comes in at £275 per month based on the average mortgage rate of 4.21% over a 25-year term. There are also options available to buy a home for university let with no deposit.

Other affordable areas for monthly mortgage payments include the Teesside University (£361 per month) and the University of Aberdeen (£435 per month).

The biggest saving between the average monthly mortgage repayment, versus the monthly cost of renting for students is for properties that serve Glasgow Caledonian University. The average monthly cost of a mortgage repayment in the university’s G4 postcode is £806 per month, £535 per month cheaper than the average monthly cost of renting at £1,341.

Other options where the difference between mortgage and rent is most significant include the University of Strathclyde in Glasgow’s G1 postcode (-£502), followed by the University of Leeds in LS2 (-£488).

Stephanie Daley, spokesperson for Alexander Hall, says: “Securing a place at university is something to be celebrated, and this September hundreds of thousands of first-time students will leave home to take that first step into the wider world but it comes with a significant financial burden due to the high cost of living and renting.” “It’s for this reason that we’ve seen a growing trend of parents opting to help alleviate this strain by investing in a property for their child. This allows students to access housing without overstretching on rent, benefit from the lower cost of a mortgage repayment, and start building equity in a property. It’s a practical way for students to get ahead while studying and helps them take their first steps on the property ladder before they’ve even graduated.”