Why are more buy to lets being bought by students' parents?

Mon 08 Sep 2025

The low-budget student lifestyle is one that is often seen as a right of passage, from Pot Noodles to nights out, money saving has always been a key aspect of the university experience. The same standard applies when discussing student accommodation yet, according to a high street estate agency, more parents are getting involved in their children’s finances whilst at university. This is proven by the increased number of buy to let’s being bought by student’s parents, confirmed with figures which compare the average prices of a mortgage for a property in different student areas in comparison to the cost of rent.

The University of Sunderland ranks as the most affordable of the top 100 UK universities for mortgage market accessibility. The University lies in the postcode of SR1 where the average house price is £59,454, with a 15% mortgage deposit coming to £8,918, the mortgage loan would be £50,535. Converting this into monthly payments the total cost for the mortgage would come to a mere £275pcm. Although this is an amazing price for a property in this area, Glasgow Caledonian University is top of the class.

G4 is the Glaswegian postcode the university lies in. The average monthly cost of a mortgage repayment in the university postcode is £806, whereas the average monthly rent payment costs £1,341. Therefore, for the parents of students who attend Glasgow Caledonian University, taking out a mortgage on a property rather than renting one out could save them and/or their children £535pcm. There are other beneficial factors to consider in this new money saving craze. Firstly, the majority of university students do not live alone, most opt to live in house shares with friends and other students. With the other flatmates financial contributions, the mortgage payments for the owner will be minimal, and there could be potential for overpayments. Furthermore, it is a good opportunity for parents to give their children an opportunity to get onto the property ladder without the strain of high mortgage payments. If you are a parent, or an investor, keep in mind that, as with any property investment, prior research is essential. Make sure you explore your options when considering student areas, larger student cities such as Leeds have been a target for purpose-built student accommodation and large investors. Perhaps consider smaller student locations such as Hull or Swansea, which have a higher rental yield.

  (Image @This is Money, 2021)

* Rental yield is the percentage return you can expect to make on the purchase price each year