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Liverpool Named One of The Highest Yielding Student Areas

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    Paragon Bank Reveals The Highest-Yielding UK University Hotspots

    A new study from Paragon Bank has revealed some of the highest-yielding student postcodes for investors looking to expand their property portfolios.

    Despite the potential challenges associated with student accommodation, these findings suggest that an area’s proximity to student hotspots could be a helpful metric when deciding where to invest in 2024.

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      Stoke, Liverpool & Edinburgh Top Student Rental Yield Rankings

      According to the Paragon Bank study, based on data from the past two academic years, landlords in Stoke achieved the highest average yield – 9.43%. Paragon Bank puts the average annual rental income in the city’s university postcodes at £13,860, with the average student property priced at £146,944.

      Liverpool achieved the second-highest yield at 8.93%, followed by Edinburgh at 8.23% and York at 8.12%. Coventry came in fifth place, with student postcodes in the area achieving a yield of 8.08%.

      Overall, Russell Group University locations performed the best. The Russell Group comprises 24 world-class, research-focused universities, 13 of which are based in the top 15 yielding university towns and cities.

      Across the UK, properties in student postcodes achieved a yield of 7.04% in July 2024 – rising from 6.12% in 2022.

      The full rankings can be seen below:

      LocationAnnual Rental IncomeAverage Property ValuationRental Yield
      Stoke-on-Trent£13,860£146,9449.43%
      Liverpool£26,409£295,7228.93%
      Edinburgh£32,789£398,3208.23%
      York£39,360£484,9588.12%
      Coventry£29,173£361,1538.08%
      Cardiff£29,310£369,2957.94%
      Nottingham£29,683£376,7467.88%
      Leeds£36,996£470,2797.87%
      Exeter£44,642£578,0747.72%
      Loughborough£25,201£323,1037.68%
      Sheffield£27,716£363,9177.62%
      Southampton£28,804£379,3837.59%
      Durham£34,001£453,2637.50%
      Bristol£42,281£565,0817.48%
      Newcastle£35,511£476,1317.46%

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      Should You Consider a Property Investment in Liverpool?

      So, is Liverpool a smart investment for 2024?

      According to Zoopla, the average sold property price in Liverpool over the last 12 months is £192,456. PropertyData puts the average rental yield in the L3 postcode (a popular student area) at 6.5%.

      Students in Liverpool have a wide range of options, with the city home to the University of Liverpool, Liverpool John Moores University, Liverpool Hope University, and Liverpool Institute for Performing Arts.

      The headline university is the University of Liverpool, a prestigious Russell Group member consistently ranked among the top 200 universities worldwide. Overall, the city welcomes over 50,000 new students annually, making it one of the UK’s largest student-populated areas.

      According to Paragon Bank, prime student markets like Liverpool are likely to see consistent demand over the next few years, which could translate into significant gains for investors in the long term.

      Neil Smith, Paragon Bank Head of Surveyors, said: “Portfolio landlords usually have in-depth knowledge of local student markets, to the point where they know the prime local areas and even the favoured roads that provide strong, sustainable student rental demand.

      “With demand for university places forecast to rise over the next few years, there will be a greater need for student accommodation. Some of this will be met by Purpose Built Student Accommodation, but the traditional student property provided by private landlords will remain very much part of the mix.”

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      Author

      Reece Pape

      Reece Pape is a property writer at RWinvest. Utilising up-to-date property statistics and data, Reece aims to keep investors informed on the latest market developments.

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        Liverpool Investment, Market & Investment Trends, Student Investment, UK