Editor's note: This brief was summarised by The Property AI Team from a report by Property118. Read the original article for full details.
Middlesbrough tops student property yields at 24.3%, research finds
Middlesbrough leads the student property market for potential landlord returns, with an average gross advertised yield of 24.3%, according to research by Accommodation for Students. The England and Wales average is 8.4%.
Middlesbrough also appeared among the cheapest places for students to live in Accommodation for Students' previous affordability research, suggesting a link between lower living costs for students and stronger potential advertised returns for landlords.
What the findings mean for agents and clerks
For letting agents and inventory clerks working in or considering the student lettings sector, the figures point to the role more affordable university towns can play in the market. The research reports advertised yields rather than realised returns, but the gap between Middlesbrough's 24.3% average and the 8.4% England and Wales average is a notable one for anyone tracking the student rental market.
Agents in lower-cost student towns may wish to cite the research when advising landlords on potential student investment purchases, while inventory clerks in such areas may see continued demand for student property services. Advertised gross yields should be treated as a starting point rather than a guarantee of net returns, and agents will want to weigh local demand, void risk and management costs before drawing conclusions.
The wider picture
The research, reported by Property118, positions cheaper student cities as leading the market for potential landlord returns. Accommodation for Students' earlier affordability work, which placed Middlesbrough among the cheapest places for students to live, provides the context for the latest yield findings.
Source: Property118