More parents are buying student lets to help children struggling with rising costs at university, according to research from Alexander Hall.
The study found that the University of Sunderland had the lowest average monthly mortgage repayment, while Glasgow Caledonian University had the biggest gap between mortgage and rental costs.
Alexander Hall reported that parents are increasingly stepping in to buy properties near their children’s universities.
This comes as students are hit by higher tuition fees, living costs and rents.
The firm said parents see buying a property as a way to save money on rent and help their children start building equity early.
The average house price near the University of Sunderland was £59,454, with a 15% deposit of £8,918.
This meant the average monthly mortgage payment was £275 at a 4.21% rate over 25 years.
Teesside University and the University of Aberdeen also offered low average monthly mortgage costs at £361 and £435 respectively.
Glasgow Caledonian University offered the largest saving when comparing mortgage and rent in its G4 postcode.
The average mortgage was £806 per month, £535 lower than the average rent of £1,341.
Other universities where the difference between mortgage and rent was high included the University of Strathclyde, University of Leeds, Newcastle University, Northumbria University, University of Sunderland, University of South Wales, Cardiff University, Nottingham Trent University and University of Nottingham.
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.”
Daley added: “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.”
She said: “It’s also important to note that, whilst the wider cost of renting a property at university is often shared by multiple students within the same household, the same also goes for investing in a property for your child giving them the opportunity to let to other students, helping to further reduce the mortgage costs associated with the property.
“For this type of lending, professional advice is paramount to ensure buyers take the correct mortgage type which allows the letting of multiple rooms in the home.”
