University towns attractive to those with buy to let mortgages

Published: April 23, 2008

People with buy-to-let mortgages have been advised to invest in university towns.

According to the website Buy Association, there are a number of good areas in which to invest at present.

The site pointed out that towns with universities tend to make sense for investors as they provide a large population of people who are looking for rented accommodation.

Paul Collins, property editor for Buy Association, said that people with buy-to-let mortgages can find a good investment by doing their research.

"Buying near the university cities would be quite a good investment at the moment because of the amount of students and it's not so governed by the economic situation," he commented.

"Perhaps look at some of the second cities – some of the smaller provincial cities such as Cambridge and Oxford.

"Although they are still university towns they are attracting quite a lot of young workers," continued Mr Collins.

According to Halifax, 20 university towns recorded house price growth of at least 20 per cent in the year to August 2007.