However, a recent survey carried out by the online estate agent, Hatched, which looked at the profitability of popular student cities, concluded that Oxford was the worst place in the UK for student landlords.
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High Property Prices
The main problem is the high cost of properties in Oxford. An average house costs £573,018. This is well above the average property price in the UK, which in June was £223,257. Many student landlords buy family homes and convert them into student accommodation. Renovations typically include added extra bathrooms, fire safety features, or converting rooms into bedsits.
With renovations costing, on average, £97,000, buying and renovating a family home just isn’t profitable. Even with rental income of £2,352 per month, it would take a landlord around 25 years to pay off his costs.
The Best City for Student Landlords
At the other end of the scale, Leicester was found to be the best city for student landlords thanks to relatively low property prices, reasonable renovation costs, and high demand for student accommodation.
Becoming a student landlord works well for many investors, as rental income is guaranteed for at least 12-months and as long as you choose the right location, demand should be high.