Investing in buy to let to help children through university is proving profitable with landlords.

Property prices in the leading university towns and cities have risen so fast over the past three years that the profits in some easily cover tuition fees.

Coventry leads the way as the country’s hottest buy to let spot for student rentals.

If a family had bought a home to rent to students in June 2015 for an average £114,625 at the time, when the degree course starting that year finished in June 2018, the property would now be worth an average £184,690.

That’s a capital gain of £70,065 over the degree course that easily balances out tuition fees of £27,250 paid over the same time.

The property would also generate rents to cover living costs, books and other expenses.

The data was compiled by online estate agency Housesimple, which looked at average home prices in 50 leading university towns and cities between June 2015 and June 2018.

CEO Sam Mitchell said: “Tuition fees are a stark reality now and the cost of a three-year degree at many universities is fast approaching £30,000. Add on top of that accommodation costs and general living expenses, and studying for a degree is leaving many students facing years of financial hardship when they graduate.

“”Buying a property in the town or city where your child is studying could provide a possible solution and give your offspring a debt-free start in life.”

Top performing university city house prices 2015 – 2018


University city/town Average house price June 2015 Average house price June 2018 Increase % Increase
Coventry £114,625 £184,690 £70,065 61.1%
Manchester £137,418 £174,044 £36,626 26.7%
Essex (Colchester) £211,799 £267,124 £55,325 26.1%
Bristol/UWE Bristol £218,579 £272,545 £53,966 24.7%
Kent (Canterbury) £245,101 £303,835 £58,734 24.0%
Birmingham/Aston £146,874 £181,241 £34,367 23.4%
Nottingham/ Nottingham Trent £111,562 £136,565 £25,003 22.4%
Loughborough £189,937 £224,442 £40,505 22.0%
Southampton £175,422 £213,167 £37,745 21.5%
Portsmouth £175,216 £208,599 £33,383 19.1%

Source: Housesimple