0:01 AM, 3rd September 2025, About 3 months ago 1
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The best destination for landlords wanting the highest yielding university locations has been revealed by Paragon.
The lender’s analysis of mortgage data from the last two years points to Stoke-on-Trent as the number one destination for student landlord investment.
The city, home to Staffordshire and Keele universities, delivers an impressive average yield of 9.42%, slightly down from last year’s 9.43% but still unmatched among UK university locations.
Paragon found that Stoke’s student accommodation landlords earn an average annual rental income of £14,222, with properties valued at £150,982.
The bank’s managing director of mortgages, Louisa Sedgwick, said: “With universities about to commence the new academic year, these figures highlight the enduring strength of the student rental market.
“University towns like Stoke and Plymouth offer landlords a compelling combination of affordability and strong rental demand.”
She added: “While Russell Group universities often anchor strong rental markets, our data shows that high yields are not exclusive to these institutions.
“Landlords should look beyond the traditional powerhouses and consider emerging university towns where property prices are lower but rental demand remains high.”
In Paragon’s top 10 of best uni towns offering the best landlord yields, Plymouth ranks second, offering a 9.27% yield.
It is followed by Liverpool at 8.85%, which slipped from last year’s runner-up spot.
Other notable performers include Southsea at 8.31%, Edinburgh at 8.23% and Cardiff at 8.22%.
Coventry, York, Leeds and Nottingham also feature in the top 10, with yields ranging from 7.97% to 8.16%.
The data underscores the strength of student PRS, with an average yield of 7.39% across university postcodes in June, a rise from 6.63% two years previously.
In contrast, non-student areas lagged behind, averaging 6.85%.
The report highlights the dominance of Russell Group universities, with 13 of their 24 institutions located in the top 20 high-yield towns.
However, four non-Russell Group locations in the top 10, including Stoke and Plymouth, signal that smaller or newer universities can also offer lucrative opportunities for investors.
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Member Since July 2016 - Comments: 160
10:34 AM, 3rd September 2025, About 3 months ago
This article ignores the elephant in the room which is of course the Renters Rights Bill. I don’t see how the impact of the Bill on the student rental market will be anything other than catastrophic.