Ten of the 48 ranked student property markets in England and Wales now produce average gross yields above 10%, against a market-wide average of 8.4%.
The figures come from the Accommodation for Students Rental Yield Report, which measured advertised rents against local property values across 22,107 student properties and 61 cities in the 12 months to June 2026.
Where yields are strongest
- Middlesbrough leads at 24.3%, on £24,326 of advertised annual rent against a property value of £100,019, across 92 properties.
- Hull is second at 12.8%, on £21,046 against £164,683, across 111 properties.
- Wolverhampton at 11.9%, Plymouth at 11.8% and Stoke-on-Trent at 11.7% complete the top five.
- Northampton at 11.4%, Liverpool at 11.3%, Durham at 11.2%, Lancaster at 10.8% and Gloucester at 10.1% make up the rest of the top ten.
Sample sizes vary widely across that list, from 820 properties in Plymouth to 16 in Wolverhampton, so the larger markets carry the more dependable figures.
Where yields are weakest
Kingston is the lowest ranked market at 4.5%, followed by Bedford at 5.0%, London at 5.2% and Canterbury at 5.5%.
London makes the point most clearly.
Student property there advertises for £36,166 a year, which is £11,840 more than in Middlesbrough.
Set against an average property value of £697,910, however, that rent returns 5.2% rather than 24.3%.
Property type matters too
Flats with three or more bedrooms are the strongest segment nationally at 12.5%, followed by houses with six or more bedrooms at 9.4%.
Two-bedroom flats return 8.9% and studios 8.5%.
Houses with one or two bedrooms are the weakest segment at 5.2%.
What the figures show
Across the table, the purchase price moves the yield far more than the rent does.
Rents in the highest-yielding markets are not unusually high, and several sit below the national average of £24,621.
What separates those markets is what the property costs to buy.
Gross yield is not profit
The report measures gross advertised yield, which is annual advertised rent divided by the price paid locally for property of the same type and size.
It does not account for achieved rents, empty rooms, running costs, licensing, tax, management fees or finance costs.
Simon Thompson, managing director of Accommodation for Students, said: “Gross yield is only a starting point and is not the same as profit.
“Buyers must look closely at local demand and consider mortgage and tax implications, licensing, insurance, maintenance, management costs and the possibility of empty rooms before deciding whether a property is a sound investment.”
He added that parents facing three or four years of rent may want to explore whether buying in a lower-cost university location could suit their family, with their child living in the property while the remaining rooms are let to other students.
We looked at the top-ranked market in more detail in our report on Middlesbrough, and you can also read how HMOs compare on returns.
