Student landlords in Belfast are raking in £1.8bn every year, making it the most profitable university city in which to own rental property in the UK.
nd while the average student rental price per calendar month of £832.40 per property only makes it the 21st most expensive to stay in while studying, the sheer number of students who want to live in the city means the overall profit for landlords ranks alongside Durham as the most lucrative.
A new survey from CIA Landlords estimates that 22.1% of the city centre population are students, with Belfast placed second behind London when it comes to money taken by landlords.
London’s student population of just under 80,000 hands over around £266bn in rent every year.
Of the other main UK university cities, landlords take in £508m in Glasgow, £360m in Oxford, £179m in Cambridge and £352m in Bristol despite it having the highest rents outside London.
“When looking at the estimated number of student households in a city, as well as the average yearly rent from student-area properties, our team has found out the cities with the most potential profit for student landlords,” the report said.
“Those wondering if they should get into the student landlord business in Belfast and Durham have a good chance of finding many students looking for properties, as well as making a good return. Our study found that Belfast’s population is 22.1% students — and the student landlord market in Belfast brings in approximately £1,766,103,096 every year.
“Meanwhile, in third place, Durham’s large student population (33.6%) means that their student landlord yearly market stands at around £771,746,489.
“Both Belfast and Durham do not have the most expensive average student-area rent costs, but the percentage of their city’s residents that are university students gives landlords here an abundance of opportunity with a much higher demand for student-friendly properties.”
Much of Belfast’s student population is centred around the Lisburn Road, Ormeau Road, Stranmillis and Holyland areas, which has led to complaints from local residents about overcrowding.
Of Belfast city centre’s estimated population of 274,770, some 60,805 of those are students attending university or college. That’s almost a quarter (22.1%) of all those living in the city.
Landlords have been accused of failing to maintain their properties to a decent standard, while residents have been campaigning for years about anti-social behaviour due to the number of students gathered in one area.
Last month, estate agents claimed there aren’t enough student-type houses in the Holyland, after a landlord failed to get a new HMO (House in Multiple Occupation) licence for his property.
At Belfast City Council’s Licensing Committee, elected representatives refused an application for premises at Fitzroy Avenue as a house in multiple occupation on the grounds of overprovision of HMO accommodation in the area.
The council said 45% of the total dwelling units in the area were already HMO properties, which already exceeded the 30% development limit.
Brid Ruddy, chair of Holyland Residents Network, appeared at the Licensing Committee to voice her objection to that application.
“I have seen the destruction of our area due to the overprovision of HMOs over the last number of years,” she told the committee.
“We are the most densely populated area of Belfast and we have the highest rate of anti-social behaviour. We have constant fly-tipping and open bins that are constantly used for that because the houses have been built out so much to the back that there is no space left for people to have adequate household bins. The place stinks to high heaven.”
Reading, Derby and Luton have been named as the least profitable cities for landlords to invest in.
The full study is available here.
Top ten landlords’ revenues
1. London, £2,661,110,735
2. Belfast, £1,766,103,096
3. Durham, £771,746,489
4. Edinburgh, £568,428,420
5. Manchester, £547,079,641
6. Leeds, £537,239,604
7. Glasgow, 507,979,255
8. Birmingham, £484,858,627
9. Coventry, £362,262,858
10. Oxford, £360,615,814
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