Plymouth has been identified as the top location for landlords looking to invest in purpose-built student accommodation in the UK by yieldit.

According to the buy-to-let agency’s available student properties, the city commands average net yields of 7.24%, beating all other areas in terms of profitability.

Student landlords in Leeds receive the second highest returns at an average of 6.57%, boosted by the University of Leeds’ status as one of the UK’s largest institutes of higher education with more than 34,000 students.

Sheffield ranks third with an average of 6.24% and, in close succession, Liverpool at 6.23%. Both cities are considered vibrant student centres, each home to more than one university and thousands of students competing for accommodation.

Making up the top five is Nottingham with an attractive average net yield of 6.17%.

Middlesbrough, with an average net yield of 6.14%, ranks marginally behind the likes of Liverpool and Sheffield.

Ryan Hughes, head of sales at yieldit, commented: “Investment in purpose built student accommodation is an excellent way for buy-to-let investors to diversify and continues to offer excellent returns thanks to the world-class reputation of higher education institutions in the UK.”

“Predictably the best performing areas are those which are the most popular among students looking for a comprehensive university experience, with everything from specialist courses to a fantastic nightlife. With that in mind we expect that other locations on the list will continue to climb in the profitability rankings as they invest further in their universities and campuses grow in size.”

Average net yields of student accommodation according to yieldit’s available properties:

Plymouth – 7.24%

Leeds – 6.57%

Sheffield – 6.24%

Liverpool – 6.23%

Nottingham – 6.17%

Middlesbrough – 6.14% 

Bolton – 5.97%

Chester – 5.90%

Glasgow – 5.84%

Sunderland – 5.73%

Newcastle – 4.77%