Analysis from Paragon Bank reveals Stoke-on-Trent as the university town where landlords achieve the highest yields.

Landlords in Stoke, who provide accommodation to students studying at Stafford and Keele universities, achieved an average yield of 9.43%, based on offer data over the past two academic years. Average annual re

ntal income in the city’s student postcodes stood at £13,860, with the average student property priced at £146,944.

Student postcodes in Liverpool achieved the second highest yields at 8.93%, followed by Edinburgh at 8.23% and York at 8.12%.

Coventry, which serves Warwick University and the University of Coventry, completes the top five, with student postcodes achieving a yield of 8.08%.

Overall, Russell Group university locations performed well. The Russell Group consists of 24 world-class, research-focused universities and, of this group, 13 are based in the top 15 yielding university towns and cities.

Property in student postcodes across the UK achieved a yield of 7.04% in July 2024, a figure that has risen from 6.12% in the same period two years ago.

Commenting on the latest data, Paragon Bank managing director Louisa Sedgwick said: “Student property remains a popular choice for portfolio landlords because they can typically achieve higher yields than standard buy-to-let property. They also benefit from parental guarantees, so arrears are typically lower.”

She added: “The stronger performing locations based on our lending data shows that there’s a gravitation towards quality universities, with 13 of the top 15 locations boasting a Russell Group institution.”