The UK university cities where landlords are making the most money from students’ rent

Many of the most profitable university cities for landlords are those with Russell Group unis, according to new data.

Research from This is Money using data from Paragon Bank reveals the cities where landlords can make the most money from buy-to-let properties in student-dominated postcodes. The lucrativeness of an area for landlords is based on the annual yield – that’s the proportion of a property’s price that the landlord can make back through rent each year.

The university city where landlords can make the most money from students is Stoke-on-Trent. That’s home to Keele University and the University of Staffordshire. Houses typically cost lest in this area – the average value of a property is £150,982. However, there are plenty of students who still need to live somewhere, The average annual rental income in student-dominated postcodes is £14,222. That means landlords can expect a high yield of 9.42 per cent. This is much higher than the overall average rental yield for properties in the UK, which is around six per cent.

Out of the 15 most profitable cities for student landlords, 11 contain a Russell Group university. Cardiff, Coventry (where the Uni of Warwick is based), Durham, Edinburgh, Exeter, Leeds, Liverpool, Nottingham, Sheffield, Southampton and York all make the list.

So, here are the UK universities where landlords are making the most money out of students:

15. Southampton – 7.67 per cent yield

Average annual rental income of £29,178

14. Exeter – 7.71 per cent yield

University of Exeter students in their kitchen

Average annual rental income of £44,659

13. Durham – 7.81 per cent yield

Average annual rental income of £37,112

12. Sheffield – 7.84 per cent yield

Average annual rental income of £26,866

11. Loughborough – 7.86 per cent yield

Average annual rental income of £27,955

10. Nottingham – 7.97 per cent yield

Average annual rental income of £20,702

9. Leeds – 8.01 per cent yield

University of Leeds students by their house

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Average annual rental income of £38,868

8. York – 8.12 per cent yield

Average annual rental income of £39,360

7. Coventry – 8.16 per cent yield

Average annual rental income of £28,952

6. Edinburgh – 8.21 per cent yield

Average annual rental income of £32,789

5. Cardiff – 8.27 per cent yield

Mermaid Quay in Cardiff

Average annual rental income of £32,344

4. Portsmouth – 8.31 per cent yield

Average annual rental income of £39,215

3. Liverpool – 8.86 per cent yield

Average annual rental income of £26,399

2. Plymouth – 9.27 per cent yield

Average annual rental income of £35,224

1. Stoke-on-Trent- 9.42 per cent yield

Average annual rental income of £14,222

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