Paragon Bank has revealed the UK’s top university towns and cities for buy-to-let yields, with Stoke-on-Trent once again leading the pack.
According to Paragon’s analysis of mortgage offer data across student-dense postcodes over the past two academic years, landlords in Stoke are achieving average yields of 9.42%. Although down slightly from 9.43% achieved last year, the city retains its position as the highest yielding university location.
Stoke, which serves Staffordshire and Keele universities, boasts an average annual rental income of £14,222 and an average property valuation of £150,982. Plymouth follows closely with a yield of 9.27%, while Liverpool, which held second place last year, now ranks third at 8.85%.
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%).
Across the UK, student postcodes delivered an average yield of 7.39% in June 2025, up from 6.63% two years ago. These yields continue to outperform those in non-student areas, which averaged 6.85% in the same period.
The data also shows that Russell Group universities continue to perform well, with 13 of the 24 institutions located in the top 20 yielding towns and cities. However, the presence of four non-Russell Group locations in the top 10 suggests that smaller or newer universities can also deliver strong returns.
Commenting on the findings, Louisa Sedgwick, Paragon Bank’s Managing Director of Mortgages, 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. Landlords should look beyond the traditional powerhouses and consider emerging university towns where property prices are lower but rental demand remains high.”
