Middlesbrough has cheapest student digs - but least profitable area for student landlords, survey shows (From Darlington and Stockton Times)
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Rental yields second lowest in the country in Middlesbrough
MIDDLESBROUGH has been named as one of the least profitable places to be a student landlord.
Middlesbrough, along with Carlisle and Bournemouth, was found to offer the lowest potential returns to landlords looking to invest in student properties.
However the town offers the best value for students at the University of Teesside, with the cheapest student digs in the country, the survey by property search website Zoopla showed.
The average rent for a four-bedroom property in Middlesbrough was £562 a month – six times less than London where the average was £3,485.
The university cities of Glasgow, Hull and Manchester were named as the country's top buy-to-let hot spots for landlords looking to invest in student properties.
Relatively low house prices in Glasgow combined with an average rent of more than £1,000 a month on a typical four-bedroom student property mean that landlords there can expect the best rental yields in the UK at around 4.95 per cent.
The rental yield on a property is the annual return an investor can expect to make. It is worked out by calculating a year's rental income as a percentage of how much the rental property cost in the first place. Zoopla's findings were for made for gross yields, before the deduction of tax and expenses.
Hull had the second best rental yield at 4.8 per cent, followed by Manchester at 4.59 per cent.
Many of the cities offering better potential returns for landlords are outside the more expensive areas of the South where property prices are relatively high. The size of the profit a landlord can expect to make also depends on the strength of demand from potential tenants.
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