Investors looking for the best return on their buy-to-let purchases should be seeking out property on Gladstone Street, Park Road and Castle Boulevard research has revealed.
Undertaken by Student Housing, Nottingham’s newest specialist lettings and property management agency, the study released today identifies the top ten best streets in which investors should be looking to buy based key metrics.
Student Housing’s Top Ten Best Streets To Invest In list is based on average asking prices, the number of bedrooms in the average house in the particular street and the potential rent those properties should command. With annual yields ranging from 8.42 to 14.53% and average asking prices starting at just £60,000 Nottingham is an attractive investment city, says Harry Conti, the director of Student Housing who conducted the research.
“We’ve used our access to industry statistics and property intelligence to identify the areas in which investors should be prioritising their search for the best returns,” he says. “Nottingham is an incredibly attractive destination for students. Its universities are excellent, the city is vibrant and offers something for everyone, and that includes investors. With prices for a PBSA unit in Houndsgate starting at just £60,000 commanding rent of £485 per month, an investor will receive a 9.72% gross annual return, and that takes into account our fees for letting and managing the property.”
The highest annual yield found by Student Housing was 14.53% per annum for an investor willing to purchase a three-bed property in Gladstone Street, which required an estimated £30,000 of improvements. However, with an annual rental income of £18,890, the property’s £100,000 price tag would make it an ideal investment.
The largest potential annual rental income – £67,320 – was found to be from an eight-bedroomed property valued at £800,000 in North Sherwood Street.
Student Housing’s top ten streets for investors are:
Average Asking Price: £130,000
Price per Bed: £43,000
Current Rent: £9,500
Potential Rent: £18,890
The first entry on Student Housing’s Top Ten, is a property that recently went to auction, with a starting price of £100,000. Harry estimates it needs £30,000 of investment but once complete; it could achieve £18,000 per annum rental income, providing a gross yield of 14.53%.
Park Road (The Park)
Average Asking Price: £230,000
Price per Bed: £57,500
Potential Rent: £23,460
Located on the edge of The Park, properties on the highly desirable Park Road achieve an average asking price of £230,000, providing an average per bed price of £57,500 and gross yields of 10.20%
Average Asking Price: £425,000
Price per Bed: £60,700
Potential Rent: £42,840
Located in the historic quarter of Nottingham with good city links, Castle Boulevard is a great option for any student property investor, with the average cost per bed being £60,700 it’s not the cheapest place to buy, but with higher than average rents Student Housing’s investors see average gross yields of 10.08%
Burns Street, (Arboretum Area)
Average Asking Price: £350,000
Price per Bed: £70,000
Potential Rent: £31,875
Located in the popular Arboretum Area, there are several Houses of Multiple Occupancy (HMO) properties currently available on Burns Street. With an average asking price of £350,000, you’ll get a mid-level, five-bedroom property, providing gross yields of 9.11%
Average Asking Price: £360,000
Price per Bed: £60,000
Potential Rent: £35,190
Located a stone’s throw from the University of Nottingham’s Jubilee Campus, properties on Middleton Boulevard are in high demand, with a number of student properties currently for sale with average yields of 9.78% Middleton Boulevard should be considered one of the best streets to invest in.
Average Asking Price: £60,000
Price per Unit: £60,000
Potential Rent: £5,830
Located close to the city centre there are a number of PBSA units available, with prices starting as low as £59,950 making it a great area in which to start an investment strategy. With properties let and managed by Student Housing, investors could receive a gross annual return of 9.72%
Church Street – Lenton
Average Asking Price: £270,000
Price per Bed: £67,500
Potential Rent: £24,460
Located in the highly sought-after Lenton area, popular for its proximity to University of Nottingham and city centre, properties on Church Street have an average asking price of £270,000, providing a gross yield of 9.06%
Forsythia Gardens (Lenton)
Average Asking Price: 225,000
Price per Bed: £75,000
Potential Rent: £19,890
This area is so popular with students and investors that the average price per bed price is a whopping £75,000, which provides a gross yield of 8.84%
North Sherwood Street
Asking Price: £800,000
Price per Unit: £100,000
Potential Rent: £67,320
North Sherwood Street’s inclusion in Student Housing’s Top Ten is less about the street but an actual property available on it, which could generate a 8.42% yield for the larger investor
Average Asking Price: £350,000
Price per Bed: £70,000
Potential Rent: £29,325
Being in the heart of a heavily populated student area, Gregory Avenue has a high student demand, with average property prices for HMO properties being £350,000, Student Housing sees average gross returns of 8.38%
“As you can see from our research Nottingham offers a wide variety of attractive investment opportunities from the relatively small properties to the very large,” concludes Harry. “All of the properties we have identified offer excellent yields. We know of lots of other opportunities in and around the city and are happy to help people find their perfect investment property.”
Student Housing was established in 2015 by former university students, Harry (25) and Marcus Askam-Yates (28). Disappointed with the standard of accommodation they could find to rent; the business partners left the University of Lincoln halfway through their degrees to start the business.
The company provides accommodation to over 1,000 University of Lincoln students and manages over 300 properties in the city, working with both private and institutional landlords and investors. It opened its Nottingham office in May 2019, generating over £2.5m from investors looking to increase or establish a property portfolio in the city.
As well as acquiring property for private investors, Student Housing is keen to work with current landlords who are interested in increasing their yields and is also offering a consultation service to professionals, such as architects and conveyancers.