Stoke-on-Trent remains the UK’s most profitable university location for landlords, topping Paragon Bank’s latest ranking of student rental yields.
The Staffordshire city, home to Staffordshire and Keele universities, delivered an average yield of 9.42% over the past two academic years, marginally down from 9.43% last year but still the highest in the country.
According to Paragon’s analysis of mortgage offer data, landlords in Stoke enjoy an average annual rental income of £14,222 against an average property valuation of £150,982.
Plymouth ranked second with yields of 9.27%, while Liverpool, which previously held second place, slipped to third on 8.85%. Other high-yielding student destinations included Southsea (8.31%), Edinburgh (8.23%), Cardiff (8.22%), Coventry (8.16%), York (8.12%), Leeds (8.01%) and Nottingham (7.97%).
The research found that student postcodes generated an average yield of 7.39% in June 2025, up from 6.63% two years earlier, continuing to outpace non-student postcodes which averaged 6.85%.
Paragon noted that Russell Group universities remain strong performers, with 13 of the 24 institutions featuring in the top 20 yielding student towns and cities. However, the presence of four non-Russell Group locations in the top 10 underlined that smaller and newer universities can also provide attractive opportunities for investors.
Louisa Sedgwick, managing director of mortgages at Paragon Bank, 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.”
Top 20 yielding university towns and cities:
| Town/City | Avg. Rental Income | Avg. Valuation | Rental Ratio |
| Stoke-on-Trent | £14,222 | £150,982 | 9.42% |
| Plymouth | £35,224 | £379,881 | 9.27% |
| Liverpool | £26,299 | £297,309 | 8.85% |
| Southsea (Portsmouth) | £39,215 | £472,121 | 8.31% |
| Edinburgh | £32,789 | £398,320 | 8.23% |
| Cardiff | £31,804 | £387,052 | 8.22% |
| Coventry | £28,952 | £354,858 | 8.16% |
| York | £39,360 | £484,958 | 8.12% |
| Leeds | £38,868 | £485,464 | 8.01% |
| Nottingham | £30,702 | £385,185 | 7.97% |
| Loughborough | £27,725 | £353,552 | 7.84% |
| Sheffield | £26,866 | £342,659 | 7.84% |
| Durham | £36,452 | £469,359 | 7.77% |
| Exeter | £44,659 | £579,036 | 7.71% |
| Southampton | £29,178 | £380,648 | 7.67% |
| Bristol | £42,515 | £565,756 | 7.51% |
| Newcastle Upon Tyne | £36,882 | £498,617 | 7.40% |
| Manchester | £30,356 | £412,881 | 7.35% |
| Bath | £40,988 | £567,386 | 7.22% |
| Birmingham | £36,042 | £530,366 | 6.80% |
