When you compare the cost of mortgage payments versus rent in university cities it makes most sense to invest around Glasgow Caledonian University, analysis from broker Alexander Hall shows.
The average monthly cost of a mortgage repayment in the university’s G4 postcode comes in at £806 per month, £535 per month cheaper than the average monthly cost of renting at £1,341.
Other universities offering strong savings where the difference between mortgage and rent is greatest include the University of Strathclyde in Glasgow’s G1 postcode (-£502), followed by the University of Leeds in LS2 (-£488), Newcastle University (-£484), Newcastle University and Northumbria University (-£484), the University of Sunderland in SR1 (-£397), University of South Wales (-£396), Cardiff University (-£371), Nottingham Trent University (-£356), and the University of Nottingham (-£355).
Stephanie Daley, spokesperson for Alexander Hall, said: “Securing a place at university is something to be celebrated, and this September hundreds of thousands of first-time students will leave home to take that first step into the wider world.
“Not only is it an understandably daunting experience living away from home for the first time, but it’s also one that comes with a significant financial burden due to the high cost of living and renting.
“It’s for this reason that we’ve seen a growing trend of parents opting to help alleviate this strain by investing in a property for their child, and for many, this parental support is essential.
“There are many ways parents can support adult children onto the ladder, for example through joint borrower, sole proprietor options or regulated buy to let which allow family members to live in the property or specific ‘buy for university’ products which don’t even require a deposit.”
“This allows students to access housing without overstretching on rent, benefit from the lower cost of a mortgage repayment, and start building equity in a property. It’s a practical way for students to get ahead while studying and helps them take their first steps on the property ladder before they’ve even graduated.”
Alexander Hall has seen an increasing trend of parents to invest in a property to help their child during their university years.
In doing so, they alleviate the high cost of renting in favour of a more palatable mortgage payment and this approach not only represents a smart investment for the future as a potential university let, but also helps the child get their first foot on the property ladder and begin building equity while studying.
