With A-Level results day approaching, parents should consider investing in student property as an alternative to renting.

High capital growth and rental yields are possible, according to research. Out of the top twenty universities (Guardian University League Table 2006), the highest inflation has been recorded in Nottingham, where house prices have risen by 55% over five years. Loughborough and Durham came third and fourth with 48% and 42% respectively.

Cities in the South underperformed, with Exeter, in second position with 53%, the only southern city in the top five.

House price growth in the top 20 university cities

Source: Guardian University League Table 2006, Hometrack

Southern universities, including Bath, Bristol and London, were positioned towards the bottom of the table, and reported capital growth of 21.6%, 22.3% and 25.8% respectively. Although still strong capital growth, they lag behind cities that are further North, which have seen above average house price inflation over the past five years.

75 of the 99 apartments at the Junxion next to Lincoln University building have already been sold to individual buy-to-let investors. Investors can purchase individual apartments that are let and managed 24/7 by an onsite management team, facilitating the whole process. Apartments at the Junxion are for sale with annual net yields of circa 6% and are being offered by Bournston at the Property Investor Show.

Senga Hill, sales and marketing manager at Bournston Group, said: "Investing in student property is a great idea for parents wanting to help support their children while at university, as an alternative to renting. Even if you don’t have a child who is going to university, investing in new build, fully managed student apartments can be a lucrative investment option for other buy-to-let investors."

Further details on the Property Investor Show at the ExCeL Centre in London’s Docklands from Friday 22 to Sunday 24 September, visit www.propertyinvestor.co.uk.