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New data reveals the top location for student yields

Recent data from specialist online buy-to-let agency, yieldit, has named one UK city a class above the rest for student accommodation yields and the top location for landlords looking to invest in purpose built student accommodation.

According to yieldit’s available student properties Plymouth commands average NET yields of 7.24%, beating all other areas in terms of profitability. The data shows that Plymouth’s student landlords receive, on average, a 2.47% higher return than the lowest ranking city, Newcastle, which has a 4.77% average NET yield.

Behind Plymouth, student landlords in Leeds receive the highest returns at an average of 6.57%, boosted by the University of Leeds’ status as one of the UK’s largest institutes of higher education with more than 34,000 students.

Following Leeds in the rankings is Sheffield with an average of 6.24% and, in close succession, Liverpool at 6.23%. Both cities are considered vibrant student centres, each home to more than one university and thousands of students competing for accommodation. Making up the top five is Nottingham with a respectable average NET yield of 6.17%.

Unsurprisingly, three of the top five locations for the highest student yields also feature in the Which? University Student Survey 2018 ‘all-rounder universities’ category, with the University of Leeds, the University of Nottingham and the University of Sheffield each scoring highly across all categories. This indicates that, as expected, the popularity of higher-education institutions among students is one of the leading indicators of where good returns might be had.

Sitting in the middle of the table of results is Middlesbrough with average NET yields of 6.14%, only marginally behind the likes of Liverpool and Sheffield. Having invested over £270m in its award-winning campus, Teesside University continues to attract students from the UK and beyond, with students from over 100 countries having graduated from its courses.

Ryan Hughes, Head of Sales at yieldit, said: “Investment in purpose built student accommodation is an excellent way for buy-to-let investors to diversify and continues to offer excellent returns thanks to the world-class reputation of higher education institutions in the UK.”

Predictably the best performing areas are those which are the most popular among students looking for a comprehensive university experience, with everything from specialist courses to a fantastic nightlife. With that in mind we expect that other locations on the list will continue to climb in the profitability rankings as they invest further in their universities and campuses grow in size.”

Average NET yields of student accommodation according to yieldit’s available properties:

Plymouth – 7.24% 
Leeds – 6.57% 
Sheffield – 6.24% 
Liverpool – 6.23% 
Nottingham – 6.17% 
Middlesbrough – 6.14% 
Bolton – 5.97% 
Chester – 5.90%
Glasgow – 5.84%
Sunderland – 5.73% 
Newcastle – 4.77%

Looking for an investment property, contact Belvoir Liverpool Central sales team on 0151 231 1613 (option 1) or email us at liverpoolcentral.sales@belvoir.co.uk

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