Peter Martin, 57, a divorce lawyer, took the plunge when his son Josh, 22, was offered a place to study physics at University College London, starting three years ago. “We realised that if we rented out two rooms in the property, we would be able to pay the mortgage and nearly all the expenses, which was still cheaper than a year’s rent,” he says. So he and his wife, Jacky, 55, a teacher, paid £365,000 for a three-bedroom property a few minutes’ walk from the university, where Josh has lived for his entire course with two friends.

“It’s been good having the security of a place set for all three years,” Josh says. “Although, when we had to phone the council to complain about anything, it was always me that had to do it.”

The Martins plan to keep the property and let it out to doctors at University College Hospital.

Richard Goodyear is also pleased with the properties he bought for his two student children. When his daughter, Beth, started university in Edinburgh in 2006, he paid £194,000 for a three-bedroom flat just below the castle, which brings in £600 a month from her two flatmates. He also lets it out for the summer festival season, which makes another £2,500.

Earlier this year, Goodyear did it again, spending £192,500 on a house in Bath, where his 18-year-old son, John, will start university in September. He already has tenants for next year, when John will live in halls. “It’s an even better investment,” says Goodyear, 53, a pharmacist. “It’s a three-bedroom terrace with two receptions — you fit four students in, getting £300 to £320 per room, and I paid less than I did in Edinburgh.” He plans to continue to rent out both properties after his children graduate.

“We’ve seen parents buying for years in this area,” says Steve Witcomb, branch manager at Palmer Snell estate agency, which sold the Bath house to Goodyear. “About 75% of my business is student lets, and out of those a good 50% are parents buying for their children.”

So, if you decide to follow suit, what do you need to know?

- Be aware of the rules and regulations. It’s safest to stick to a property with fewer than five bedrooms if you don’t want it to be classified as a House in Multiple Occupation (HMO), which can mean onerous red tape and could involve registration and a fee. Check with your local council, as the rules vary. Some parent-guarantor mortgages (such as our Lloyds example) allow your child a maximum of two housemates.

- Choose location carefully. Tim Goddard, a partner in Knight Frank’s student property team, says it is easier to let out and ultimately sell a property in an established student area. “You might pick up a cheaper property in another area, but then your child may not find housemates so easily,” he says. And visit the area at night to make sure you’re happy for them to live there.

- Once you’ve found a property and lined up sharers, always draw up a rental agreement — however good friends with your child they may be.

- Get ready for that trip to Ikea — and don’t forget broadband. “There aren’t as many grungy properties around at the moment, because competition is high,” says Simon Thompson, director of Accommodationforstudents.com. “Widescreen TVs, parking provision — that’s the way it’s going.”

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