The average student leaves university with around £11,000 worth of debt, but parents of students are being advised that there could be a way around the problem.

By purchasing a buy-to-let property, parents could save their children money as well as benefiting from rental income and growth in property value themselves, according to Fusion Investment Property Services.

Speaking to website easier.com, the Fusion managing director commented: "Even parents without spare cash usually have enough equity in their property to fund a purchase."

He said that, by providing free accommodation for their own children and charging their friends rent, parents could enjoy returns of around 12 per cent.

"Our investment model breaks even on 60 per cent occupancy and the returns when properties achieve 90 per cent and 100 per cent occupancies are quite staggering," he revealed.

Return to News index