8 November 2010

With the academic year in full flow  more and more home buyers are looking to major university cities for their next purchase. Attracted by assured tenancy and good yields investors have indentified these locations as ‘golden areas’, with returns as much as 10% per annum.

A number of these investors are the parents of children heading to university, as the ‘bank of mum and dad’ make a large initial outlay to counterbalance the amount they would otherwise spend on rent each year. They can then make a decision after the three/four years whether to sell the property or continue to rent it to the next generation of students arriving each September.

The following major cities have been identified as particularly attractive destinations in the current market:

• London
• Sheffield
• Loughborough
• Birmingham
• Manchester

Robin King, Move with Us Director, stated: “The number of home buyers looking to university towns for their next opportunity has risen dramatically over the past few years, as they recognise that the prospect of low periods of vacancy and high demand represent increased security and less risk for their purchase.”

 

 

*Figures from whitehotproperty.co.uk

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