• Mon. Apr 15th, 2024

North East Connected

Hopping Across The North East From Hub To Hub

Property Expert Rubbishes North East Student Claims

kis-logoA leading property expert has rubbished reports that the North East is the worst place in the UK to rent a property to students.

As over 100,000 university students return to Northern universities this month, property website Zoopla labelled the region the worst place in the country to make a profit from student buy-to-let, with both Sunderland and Middlesbrough named amongst the ten worst performing areas.

Ajay Jagota of North East-based sales and lettings firm KIS however questioned the company’s research – believing real regional rental yields to be almost double those reported.

Zoopla named Middlesbrough the worst place to make a profit from students lets, offering student landlords a return of just 1.47% on their investment.

Sunderland was named sixth worst performing area, offering property investors a return of just 2.51%

Figures from KIS Group’s monthly Housing NOW intelligence report, however, showed rental yields in the region to be considerably higher.

Data from August’s report showed rental yields in Sunderland to actually be 4.4% – almost double the figure cited by Zoopla.

Student centres Durham City and Newcastle also recorded monthly average rental yields of 4.4% – both in excess of the national average of 3.92% reported by the property website.

Ajay Jagota of North East sales and lettings firm KIS queried Zoopla’s figures.

The property firm is famous for being the first letting agents in the UK to abolish deposits, replacing them with a one-of-a-kind landlord insurance policy offering guaranteed rent, deposit replacement, legal assistance and round the clock third party emergency home repairs

Named Letting Agent of the Year in 2013, the firm expanded into sales in 2014.

He said: “I’m not sure where Zoopla have got their numbers from – or how they can suggest the North East is a comparatively poor place to rent properties to students when the figures on the ground show yields for properties in the student centres of Durham, Newcastle and Sunderland to be above their national average.

“The reality of the situation is: If you want to make a profit from a student buy-to-let property, the North East is as good a place to do it as anywhere.

“North East universities are renowned nationally and internationally for the quality of their teaching and learning, and for the quality of their student experience. Over 100,000 students now study at universities here and although some of those live in university accommodation or at home, there is still huge demand for rental accommodation, particularly close to campuses.

“Rental yields in the North East have admittedly slipped slightly in recent months as rents have not kept up with house prices. But those prices are still the lowest in the country, making the region very attractive for investors at a time when mortgage rates are so low that it’s a very attractive time to invest in property in general.”

By admin