Increasingly many parents looking to finance their child’s accommodation while at university consider investing in a property for the child to live in. While initially this may seem like a simple option, there are several considerations to take into account. What type of property should be bought, who should buy it, how will it be financed, will it generate income and if so for who, are just a few.

Assuming a suitable property has been found, the first consideration is who and how will it be owned. If the parents purchase the property in their own name(s) higher rate stamp duty land tax (SDLT) will probably apply. If additional...