Buy-to-let investors opt for university towns
Leicester, London, Leeds, Liverpool, Chelmsford, Bristol and Coventry have topped myhomemove’s Regional Buy-to-Let Index (2008-12) showing that students are helping to prop up the housing market, as buy-to-let investors opt for university towns.
Leicester is leading the way for investment outside of London with 286 buy-to-let properties purchased in the last five years thanks to the two universities in the city.
Doug Crawford, CEO, myhomemove, said: “The buy-to-let market has performed well in recent years, with gross lending up by 29% according to the Bank of England’s latest figures.
“Last year this market accounted for nearly 10% of myhomemove’s business, with investors opting for towns with academic traditions, over alternative locations.
“Every town that tops our Index has one or more universities associated with it, meaning that in essence, students have helped to prop up the housing market for the last five years without even realising it.
“Student demand for rental properties has in turn created a steady stream of business for mortgage brokers, estate agents and conveyancers from buy-to-let investors, especially during these leaner times.”