"With universities about to commence the new academic year, these figures highlight the enduring strength of the student rental market"
- Louisa Sedgwick - Paragon Bank
Stoke-on-Trent remains the top university location for buy-to-let yields, according to new analysis from Paragon Bank.
Paragon reviewed mortgage offer data across student-heavy postcodes over the past two academic years and found landlords in Stoke achieving average yields of 9.42%. Although slightly down from 9.43% last year, the city retains its position as the highest-yielding university location.
Stoke, home to Staffordshire and Keele universities, reports an average annual rental income of £14,222 and an average property value of £150,982. Plymouth follows with a yield of 9.27%, while Liverpool, which ranked second last year, now comes in third at 8.85%.
Other notable locations include:
Southsea: 8.31%
Edinburgh: 8.23%
Cardiff: 8.22%
Coventry: 8.16%
York: 8.12%
Leeds: 8.01%
Nottingham: 7.97%
Student postcodes across the UK delivered an average yield of 7.39% in June 2025, up from 6.63% two years ago, continuing to outperform non-student areas, which averaged 6.85% over the same period.
Russell Group universities remain strong performers, with 13 of the 24 institutions located in the top 20 yielding towns and cities. However, four non-Russell Group locations appear in the top 10, showing that smaller or newer universities can also provide attractive returns.
Louisa Sedgwick, managing director of mortgages at Paragon Bank, 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.
“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.”
