It is fair to say the events of the past year has affected us all, and in many different ways. One area that has been notable in Nottingham is the impact on the student population, and it has been noticeable how sizable this market is.
It’s no surprise to see the student population being such a notable presence in the Nottingham area, but with the lockdown period, and many students studying remotely, the city is a very different place.
However, there is hope as we move forward, and it is likely colleges and Universities will once again be the bustling and thriving centres of life that we know and love.
Nottingham student rental market is an appealing one
If you are a landlord, you likely know the Nottingham rental market is an appealing one. This is a busy market with great demand, and while 2020/21 has been a difficult time, a recent study suggests the area remains one of the most important destinations for the student rental market.
UniHomes have analysed the best buy-to-let areas relating to the student population. They found the SO17 postcode, close to the University of Southampton, as the most appealing place for landlords and investors. With an average house price of £226,489 and an average rent of £1,388 per month, the average rental yield works out at an appealing 7.4%.
However, Nottingham is next on the list.
Students will return to Nottingham
The NG7 postcode area, representing the University of Nottingham, offers an average rental yield of 7%, while the NG1 postcode area, associated with Nottingham Trent, offers an average rental yield of 6.7%.
Phil Greaves, Co-Founder of UniHomes, commented: “It’s no secret that the profitability of the buy-to-let sector has been hit hard by a string of legislative changes, particularly reductions on tax relief and an increase in stamp duty. With many also financially impacted due to the current pandemic, many landlords have also seen their level of rental income impacted. However, the good news is that despite the current landscape, demand for higher education and student accommodation remains high, as many persist with their study plans with an eye on life after the pandemic.”
Phil Greaves continued by saying; “As a result, the student accommodation sector has continued to provide a consistent level of demand for many landlords, allowing them to avoid any lengthy void periods. In addition, many students finance their living arrangements via a student loan and so they don’t present the financial unpredictability that many are experiencing in the regular rental market at present. Of course, it’s still important to research other influential factors such as the yields available to ensure your investment is as profitable as it can be.”
We offer property management, property to rent and property for sale in Arnold, Woodthorpe, West Bridgford, Hucknall, Carlton, Wilford, Mapperley and throughout the Nottingham area. If you would like to arrange an appointment to help you negotiate the local buy-to-let market, please contact Holdencopley today by calling us on 01158969800 or emailing firstname.lastname@example.org.