Looking to make a smart investment and earn rental income? Then you need to check out Stoke-on-Trent!
This city has just been crowned the top spot for student landlords seeking the highest yields on their property investments. That’s right, Stoke-on-Trent is the champion of student letting, offering landlords a 9.43% average yield!
Stoke-on-Trent: A Student Haven
Stoke-on-Trent, located in Staffordshire, is home to a thriving student population thanks to its proximity to both Stafford and Keele universities. This means a steady stream of students seeking accommodation, which translates into consistently high rental demand.
With an average annual rental income of £13,860 and an average student property price of £146,944, Stoke-on-Trent offers a seriously attractive investment opportunity for landlords.
Beyond Stoke: Other Hotspots for Student Landlords
But if Stoke-on-Trent isn’t your cup of tea, don’t worry! There are plenty of other university towns and cities across the UK offering excellent yields for landlords who want to invest in student accommodation.
Here are the top 10 places where you can find the most lucrative student letting opportunities:
| Location | Annual Rental Income | Average Property Valuation | Yield |
| Stoke-on-Trent | £13,860 | £146,944 | 9.43% |
| Liverpool | £26,409 | £295,722 | 8.93% |
| Edinburgh | £32,789 | £398,320 | 8.23% |
| York | £39,360 | £484,958 | 8.12% |
| Coventry | £29,173 | £361,153 | 8.08% |
| Cardiff | £29,310 | £369,295 | 7.94% |
| Nottingham | £29,683 | £376,746 | 7.88% |
| Leeds | £36,996 | £470,279 | 7.87% |
| Exeter | £44,642 | £578,074 | 7.72% |
| Loughborough | £25,201 | £328,103 | 7.68% |
Why Student Property Is A Popular Choice For Landlords
Student property is a hot commodity for landlords, and for good reason!
- Higher Yields: Student lets typically boast higher yields than traditional buy-to-let properties, making them a more attractive investment option for those looking to maximise their returns.
- Parental Guarantees: Many students come with parental guarantees, providing landlords with additional security and peace of mind regarding rental payments.
- Lower Arrears: Student rentals tend to have lower arrears rates than other types of tenancies, thanks to the stability offered by parental guarantees.
A Word from the Experts:
Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, who produced the figures, says, “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.”