Research from Paragon Bank found that Stoke-on-Trent had the highest average buy-to-let (BTL) yield in UK university towns at 9.42% for the last two academic years.
Landlords in Stoke, home to Staffordshire and Keele universities, saw average annual rental income of £14,222, with the average property valued at £150,982.
Plymouth followed with a yield of 9.27%.
Liverpool, which ranked second last year, came in third at 8.85%.
Other locations with strong yields included Southsea at 8.31%, Edinburgh at 8.23%, Cardiff at 8.22%, Coventry at 8.16%, York at 8.12%, Leeds at 8.01% and Nottingham at 7.97%.
Student postcodes across the UK delivered an average yield of 7.39% in June 2025, up from 6.63% two years earlier.
In comparison, non-student areas averaged 6.85%.
13 out of 24 Russell Group universities were in the top 20 for yields, though the top 10 also featured four non-Russell Group locations.
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.”
Sedgwick added: “Landlords should look beyond the traditional powerhouses and consider emerging university towns where property prices are lower but rental demand remains high.”
