Research finds Nottingham as City with Best Buy-to-Let Yield

It’s no surprise that, with such large populations of students, university cities offer some of the highest buy-to-let yields.

New research by TotallyMoney reveals university cities are “potentially the most lucrative hotspots for landlords.”

Locations with high student populations – such as Nottingham, Liverpool, Manchester, Leeds and the North East – boast some of the UK’s highest rental yields.

Nottingham has come out on top, with two postcodes featuring in the top five. NG1 takes first place with an average rental yield of 11.99%, and NG7 takes fifth place with an average yield of 8.89%. It has a student population of around 37,000.

Property prices are also affordable, averaging £152,631 and £160,269 respectively – far below the UK average of £226,906.

Liverpool comes in at second place, with two postcodes in the top five. It has a student population of approximately 70,000 across its three universities. Postcode L7 has an average rental yield of 9.79%, and L1 performs well too, averaging 9.33%.

TotallyMoney’s Head of Brand & Marketing Communications, Mark Moloney, said: “With students flocking to university cities year after year and looking for a place to live, it’s no surprise the student market is a dependable one for landlords.

“Since so many students are looking for accommodation, landlords may use this as an opportunity to drum up competition between them.

“But, due to the tenant fee ban, changes in mortgage tax relief, and tighter buy-to-let lending criteria, rental profits are now being squeezed more than ever. To maximise their returns, landlords need to be savvier.”

Read more about why first year students are shunning university halls in favour of more luxurious or convenient options in the private rental sector, as well as what students want in their uni accommodation.