Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Stoke-on-Trent and Plymouth Top Student Rental Yield Rankings
Stoke-on-Trent and Plymouth have been identified as the UK’s leading university locations for landlords seeking strong student rental yields, according to new analysis from Paragon Bank. The findings, based on Paragon’s mortgage applications in known student postcodes, highlight Stoke-on-Trent as offering the highest yield at 9.42%, with Plymouth following closely at 9.27%.
In Stoke-on-Trent, which serves the University of Staffordshire and nearby Keele University, the average annual rental income for student properties is £14,222, with an average property valuation of £150,982. Plymouth student properties generate an average annual rental income of £35,224, against an average valuation of £379,881.
Liverpool, home to the University of Liverpool and Liverpool John Moores, ranks third with a yield of 8.86%, based on an average annual rental income of £26,399 and a property valuation of £297,951. Portsmouth and Cardiff complete the top five, with yields of 8.31% and 8.27% respectively. Edinburgh, Coventry, York, and Leeds also report yields above 8%.
The analysis shows that cities with Russell Group universities feature prominently in the top 15 highest-yielding locations, including Liverpool, Cardiff, Edinburgh, York, Leeds, Nottingham, Sheffield, Durham, Exeter, and Southampton. However, the two highest-yielding locations—Stoke-on-Trent and Plymouth—demonstrate that strong student property returns are not limited to cities with Russell Group institutions.
On average, properties in known student postcodes generate yields of 7.32%, compared to 6.86% for non-student postcodes. The data highlights the breadth of the student rental market, with competitive yields available across both established regional cities and smaller university centres.
These findings are relevant for UK letting agents and inventory clerks monitoring student property trends, as they indicate where demand and returns may be strongest in the current market.
Source: Mortgage Strategy