Stoke offers highest student rental yield at 9.42% – Paragon
The city recorded an average yield of 9.42%, based on annual rental income of £14,222 and an average property valuation of £150,982.
Stoke-on-Trent offered landlords the highest student rental yield among the UK’s main university locations, analysis from Paragon Bank found.
The city recorded an average yield of 9.42%, based on annual rental income of £14,222 and an average property valuation of £150,982.
Plymouth ranked second with a yield of 9.27%.
Its student properties generated average annual rental income of £35,224 against a valuation of £379,881.
Liverpool placed third with an average yield of 8.86%, based on rental income of £26,399 and a property valuation of £297,951.
Portsmouth and Cardiff completed the top five with yields of 8.31% and 8.27% respectively.
Edinburgh followed with 8.23%, while Coventry, York and Leeds each recorded yields of more than 8%.
Nottingham, Loughborough, Sheffield, Durham, Exeter and Southampton also appeared in the top 15.
Properties in known student postcodes generated an average yield of 7.32%, compared with 6.86% in non-student postcodes.
Louisa Sedgwick, managing director of mortgages at Paragon Bank, said: “As students prepare for the start of a new academic year, these figures demonstrate the strength and breadth of the university rental market.
“Cities with Russell Group universities feature prominently, reflecting the large and established student populations found in many of these locations.
“However, the strongest yields are not confined to Russell Group markets.”
Sedgwick added: “Stoke-on-Trent and Plymouth occupy the top two positions, showing how locations with comparatively accessible property values and strong student demand can offer attractive returns.
“Student property is a specialist market, so landlords need to understand local demand, the type and quality of accommodation students require and the responsibilities associated with managing shared homes.
“Those who approach the sector professionally can play an important role in providing good-quality homes while building a sustainable business.”
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