Parents who choose to buy could make a profit of almost £20,000 over the three-year term of their child's degree.
With the majority of university towns seeing stiff competition among students for rented accommodation, many parents should look at the pros and cons of purchasing a property for their child to live in while studying.
Parent's whose children choose to study in London can make the most profit if they choose to buy and rent out two of the three bedrooms. However, parents of students in Guildford, Bath and Bristol can also expect to see profits of over £10,000 in three years.
Parents could also use the flat as a long term investment for their retirement by continuing to let it out to students after their child graduates.
Lee Grandin, managing director of Landlord Mortgages, said: "With stiff competition for rented accommodation in university towns, investors are faced with a captive audience, meaning that this type of buy-to-let investment can prove highly profitable. More than anyone else it is the student who knows what their peers want, and in their child, parents have the most qualified researcher.
"It is true that property prices are high, particularly in London. However there is still definite scope for profit, with predicted house price growth and steady rental yields. These two factors combined make for a solid investment and one well worth considering before your child starts down the road to higher education."
