Colette Murphy: Degree of sense in buying your student a flat

For undergraduates taking a four-year course in a city like Edinburgh, parents could face a potential bill of around 18,000.

The Capital suffers a traditional shortage of student properties and there is always a big rush when flats are put up for let, with some students making inquiries up to nine months before the start of term.

So, rather than paying lots of money to help out with children's rent during term-time, it can make sense for parents to consider buying a student property instead.

It may sound radical, but by purchasing a student flat on a buy-to-let mortgage, parents are actually likely see a net long-term gain, as they should be able to sell it for a profit in the future. Many will find they are also able to sub-let rooms in the property out to other students during term-time to help cover mortgage repayments.

With the housing market likely to rise again in the future, now is an affordable time to buy a property if you have the funds for a deposit. Buy-to-let mortgages are also available, so it can be an investment that will pay dividends in the long run.

If you don't want to sell the property at the end of the four-year course, there's also the potential to re-let it to other students. With a three-bed or larger flat, you will have to pay for an HMO licence, but this is a small outlay compared to the potential long-term rent gain.

In Edinburgh, there are more than 50,000 students, so there is a steady demand every year for good student accommodation. Those in their second or third year are generally reliable and responsible, sign up to 12-month tenancies and have UK-based guarantors. Many student tenants are also prepared to pay a good rent for the right place.

With interest rates at an all-time low and recession making stocks and shares a daunting prospect, it makes sense to look instead to the property market as the best way to make a long-term investment.

Colette Murphy is director at Braemore Property Management.