High student yields in Liverpool

Research from Pargaon Group has suggested that postcodes in Liverpool achieved the second highest yields in the UK at 8.93% after Stoke with 9.43% followed by Edinburgh at 8.23% and York at 8.12%. Coventry, which serves Warwick University and the University of Coventry, completes the top five, with student postcodes achieving a yield of 8.08%.

Overall, Russell Group university locations performed well. The Russell Group consists of 24 world-class, research-focused universities and, of this group, 13 are based in the top 15 yielding university towns and cities.

Property in student postcodes across the UK achieved a yield of 7.04% in July 2024, according to the research, a figure that has risen from 6.12% in the same period two years ago.

Louisa Sedgwick, managing director of mortgages for Paragon Bank, said: “Student property remains a popular choice for portfolio landlords because they can typically achieve higher yields than standard buy-to-let property. They also benefit from parental guarantees, so arrears are typically lower.

Despite some concerns over student numbers in Liverpool for the 2024/2025 academic year early indications are that student numbers continued to exceed expectations for this year.

Article published by Landlord Today on 10-09-24