Stoke-on-Trent has retained its spot as the top student letting market, according to research from Paragon Bank.
The bank has analysed mortgage offer data across student-dense postcodes and found landlords in Stock achieved average yields of 9.42% over the past two academic years.
Stoke, which serves Staffordshire and Keele universities, has an average annual rental income of £14,222 and an average property valuation of £150,982.
In terms of yield, Plymouth was second with 9.27%, overtaking Liverpool from last year which now ranks third at 8.85%.
Liverpool had the lowest average rental income in the list, at £26,299.
Other high-performing locations include Southsea (8.31%), Edinburgh (8.23%), Cardiff (8.22%), Coventry (8.16%), York (8.12%), Leeds (8.01%) and Nottingham (7.97%).
Exeter had the highest average rental income of £44,659 but its average property value of £579,036 brought its rental yield down to 7.71%.
Russell Group universities took 13 of the top 30 yielding student locations in the UK.
“With universities about to commence the new academic year, these figures highlight the enduring strength of the student rental market,” said Louisa Sedgwick, managing director of mortgages at Paragon Bank.
“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.”
