With the city’s average house prices at a reasonable £147,000 and rental incomes soaring to £13,900, the potential for high returns in Stoke-on-Trent is a hope for property investors.

The city’s appeal is further bolstered by its thriving student population, thanks to the presence of nearby Stafford and Keele universities. This steady influx of students ensures a robust tenant demand, providing a sense of security and making Stoke-on-Trent a confident choice for those looking to invest in the buy-to-let market.

But Stoke isn’t the only city offering lucrative opportunities. Student areas in Liverpool and Edinburgh are close contenders, with yields of 8.93% and 8.23% respectively. These figures underscore the vast potential of student-focused property investments across the UK, inspiring and motivating potential investors.

Louisa Sedgwick from Paragon Bank notes the enduring popularity of student properties among portfolio landlords. She highlights the dual benefits of higher yields and lower arrears, the latter often attributed to parental guarantees.

The connection between high-yielding locations and prestigious universities is notable. Thirteen of the top fifteen locations boast a Russell Group institution, indicating a clear trend towards quality education hubs.

Nationwide, student postcodes are showing promising growth. July 2024 saw an average yield of 7.04%, a significant increase from 6.12% two years prior. This upward trajectory bodes well for investors eyeing the student accommodation sector.

Neil Smith, also from Paragon Bank, emphasizes the importance of local knowledge. Successful portfolio landlords often possess an intimate understanding of student markets, down to preferred streets and areas.

Looking ahead, the forecast increase in university applications suggests a growing need for student accommodation. While purpose-built student accommodation will meet some of this demand, traditional student housing provided by private landlords is expected to remain a crucial part of the mix.

The buy-to-let market offers attractive opportunities for investors, particularly in student-centric areas. With Stoke-on-Trent leading the pack and other university towns following suit, the sector seems poised for continued growth and profitability.