The study analysed the UK’s top university towns and cities based on the yield and the proportion of properties that are deemed likely to increase in value.
Newcastle University is the best location to invest in property compared to other universities, according to research from property investment portal One and Only Pro.
The study analysed the UK’s top university towns and cities based on the yield and the proportion of properties that are deemed likely to increase in value.
Newcastle offers properties at a price under £100,000 which are likely to rise in value, the study found.
Other top investment locations were at the University of Nottingham, University of Leeds and University of Sheffield.
Henri Sant Cassia, chief executive of One and Only Pro, said: “With the buy-to-let tax changes and increased stamp duty on second homes, it pays investors to avoid buying property in the top five ranked university cities in London and the South East, as average prices are very high and rental yields are much lower – averaging 4-6%, compared with properties in the North West, which offers rental yields in excess of 10%.
“Less sought areas such as Newcastle can earn almost 71% return on investment. This figure includes the costs of buildings insurance, a gas safety check, service charges and ground rents and it is all calculated automatically on our website.
“With this kind of return, savvy investors could have earned their deposit back within two years. In many towns and cities with returns like this, a property’s mortgage can be cleared from the returns within several years and then investors have full ownership.”
