Hatfield named among worst university towns for buy-to-let investors

PUBLISHED: 11:08 13 September 2018 | UPDATED: 13:46 13 September 2018

The University of Hertfordshire, Hatfield. Picture: Danny Loo

The University of Hertfordshire, Hatfield. Picture: Danny Loo

Danny Loo Photography 2018

Hatfield has been named as one of the worst places in the UK to buy investment properties aimed at students.

In a countdown of buy-to-let hotspots – and not-spots – in student areas, the home of the University of Hertfordshire came second from bottom as the gross yield it offers is so low.

According to Zoopla research, the average monthly rent for a four-bed property in Hatfield stands at £1,674 while the average asking price for such a home is a hefty £697,395 – a gross yield of just 2.88 per cent.

Only Kingston upon Thames presented a less appealing prospect for investors, with a yield of 2.81 per cent.

Anyone looking to make a mint out of the student market is advised to look north, with six of Zoopla’s hotspots in Scotland, three in northern England and one in Northern Ireland.

Edinburgh was crowned the best buy-to-let student town, with a gross yield of 6.59 per cent.

Lawrence Hall, spokesperson for Zoopla, said: “This research presents an interesting analysis for investors looking to capitalise on the student rental market.

“Parents keen to help their children though the high costs of university may consider the value of buying a property in a student town.

“It also comes as little surprise that with the slowing growth in the property market in the south, buy-to-let investors in the north can get the highest proportional rental returns.”

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