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New data reveals several unexpected university cities offer first-class returns to student landlords.
Landlord insurer Alan Boswell ranked university cities based on average student rents, the number of bedrooms in a property and the cost of landlord insurance.
The top ranking goes to Brunel University, Uxbridge, West London.
The score revealed that letting a shared home for Brunel students gave landlords the best return, an average of £3,163 a month from a property with 5.6 bedrooms - almost twice the number of paying rooms than most other universities.
Landlord insurance costs were low, too, averaging £386 a month.
Find out more about Alan Boswell landlord insurance for Guild subscribers.
The runner-up was Edge Hill University, Ormskirk, Lancashire, with a monthly rental income of £3,148, slightly lower than Brunel's.
The firm says the report is to help student landlords find the best place to invest.
The top ten investment hotspots for student landlords are:
University | Location | Average rent | Average bedrooms | Average landlord insurance cost | Monthly income |
Brunel University | West London | £640 | 5.6 | £386 | £3,163 |
Edge Hill University | Ormskirk, Lancashire | £738 | 4.7 | £321 | £3,148 |
Royal Holloway | Egham, Surrey | £630 | 5.1 | £375 | £2,851 |
University of Gloucestershire | Cheltenham, Gloucestershire | £553 | 5.6 | £260 | £2,819 |
University of Oxford | Oxford | £837 | 3.8 | £375 | £2,799 |
University College Birmingham | Birmingham | £608 | 5 | £359 | £2,654 |
University of Bedfordshire | Luton, Bedfordshire | £613 | 5.3 | £617 | £2,653 |
Buckinghamshire New University | High Wycombe, Buckinghamshire | £632 | 4.8 | £387 | £2,615 |
The University of Nottingham | Nottingham | £538 | 5.7 | £444 | £2,606 |
Nottingham Trent University | Nottingham | £535 | 5.7 | £444 | £2,589 |
Source: Alan Boswell Landlord Insurance
Separate research highlights Bradford, Yorkshire, as somewhere student landlord investors should consider.
Integritas Property Group (IPG) points out that the University of Bradford has enrolled 42,000 students - with around one in three coming to the city to study from overseas.
But the university only has some 1,000 rooms in halls plus 34 four-storey shared houses, which house a fraction of the number of students needing accommodation.
IPG says Bradford and other university cities have a huge housing gap that needs filling with quality accommodation.
CEO Mitchell Walsh said: “Investing in the property market in Bradford right now is a smart decision as the rental yield is currently at an impressive 8.25 per cent, some three per cent higher than the national average.”
Meanwhile, a recent report from rental guarantee firm Housing Hard warned students in many cities faced ‘unprecedented problems’ renting a home close to their university as the new term started this autumn.
Chief Operating Officer Graham Hayward explained that increasing student numbers and a lack of homes to rent meant they lived miles from campus, which added time and travel costs to their already tight budgets.
Cities hit by the housing shortage include London, Manchester and Bristol.
Hayward fears accommodation problems could force international students to consider university in other countries, while UK students could defer their courses.