The University of Southampton is the UK’s best buy-to-let university at present, with a typical rental yield of 7.4%.

The area has an average house price of £226,489, with typical rents sitting at £1,388 per month.

The second best was the University of Nottingham (7.0%), Nottingham Trent University (6.7%) and Newcastle University (6.3%).

Phil Greaves, co-founder of UniHomes, said: “It’s no secret that the profitability of the buy-to-let sector has been hit hard by a string of legislative changes, particularly reductions on tax relief and an increase in stamp duty. With many also financially impacted due to the current pandemic, many landlords have also seen their level of rental income impacted.

“However, the good news is that despite the current landscape, demand for higher education and student accommodation remains high, as many persist with their study plans with an eye on life after the pandemic.

“As a result, the student accommodation sector has continued to provide a consistent level of demand for many landlords, allowing them to avoid any lengthy void periods. In addition, many students finance their living arrangements via a student loan and so they don’t present the financial unpredictability that many are experiencing in the regular rental market at present.

“Of course, it’s still important to research other influential factors such as the yields available to ensure your investment is as profitable as it can be.”

IDX Real Estate