Investing in student accommodation remains one of the most profitable buy-to-let strategies in the UK. With consistent rental demand, high occupancy rates, and strong yields, university towns present excellent opportunities for landlords. In this guide, we highlight the best UK cities for student property investment in 2025.
1. Manchester – A Top Student City with Strong Demand
Manchester is home to over 100,000 students, spread across the University of Manchester, Manchester Metropolitan University, and other institutions.
Why Invest in Manchester?
✔ Rental yields of 6-8% in key areas ✔ Large student population ensures steady demand ✔ Affordable property prices compared to London ✔ Popular student areas like Fallowfield, Rusholme, and Hulme
Best Areas for Student Accommodation in Manchester:
- Fallowfield: High demand from university students
- Rusholme: Affordable buy-to-let options near universities
- Hulme: Strong rental market with good capital appreciation potential
2. Liverpool – High Rental Yields & Growing Student Population
Liverpool boasts a student population of over 70,000 from institutions such as the University of Liverpool, Liverpool John Moores University, and Liverpool Hope University.
Why Invest in Liverpool?
✔ Rental yields of 7-9% ✔ Affordable student housing market ✔ Regeneration projects boosting property values ✔ High demand for both HMOs and purpose-built student accommodation
Best Areas for Student Accommodation in Liverpool:
- Kensington: Affordable student rentals near universities
- Baltic Triangle: Trendy area with strong demand
- City Centre: High-end student apartments with premium rents
3. Leeds – One of the UK’s Largest Student Cities
Leeds is home to over 65,000 students across the University of Leeds, Leeds Beckett University, and Leeds Trinity University.
Why Invest in Leeds?
✔ High demand for student lets ✔ Strong rental yields of 5-7% ✔ Expanding job market attracting postgraduates ✔ Popular student areas with great transport links
Best Areas for Student Accommodation in Leeds:
- Headingley: Classic student area with high occupancy rates
- Hyde Park: Close to universities with strong rental yields
- Woodhouse: Affordable investment opportunities with strong demand
4. Sheffield – A High-Yield Student Investment Hub
Sheffield has a student population of over 60,000, spread across the University of Sheffield and Sheffield Hallam University.
Why Invest in Sheffield?
✔ Rental yields of 6-8% ✔ Lower property prices compared to other major cities ✔ Growing student accommodation market ✔ Steady demand from both UK and international students
Best Areas for Student Accommodation in Sheffield:
- Ecclesall Road: Popular with Sheffield Hallam University students
- Crookesmoor: Close to the University of Sheffield
- City Centre: High-end student flats with premium rents
5. Nottingham – A Student City with High Rental Demand
Nottingham has over 60,000 students from the University of Nottingham and Nottingham Trent University, making it a great city for student landlords.
Why Invest in Nottingham?
✔ Rental yields of 6-8% ✔ High student retention rates ✔ Affordable property prices ✔ Growing demand for purpose-built student accommodation
Best Areas for Student Accommodation in Nottingham:
- Lenton: Prime student rental area with strong yields
- Beeston: Affordable properties near University of Nottingham
- City Centre: Higher-end apartments catering to international students
Final Thoughts: Where Should You Invest?
For high rental yields, cities like Liverpool, Manchester, and Sheffield offer some of the best returns. For long-term demand and appreciation, Leeds and Nottingham remain excellent choices. Investing in student accommodation provides stable cash flow and consistent occupancy rates, making it a smart buy-to-let strategy.
Looking to Invest in Student Accommodation?
Contact TrustPoint for expert guidance on the best student property investment opportunities in the UK!
