5 Best Buy-to-Let Student Accommodation Cities in UK (2024)

The United Kingdom is a popular higher education destination for students from major source countries like India, China, South Korea, etc. With the rising student demand, market players and developers are gradually focusing their attention on buy-to-let student accommodation in the UK. Investors can reap consistent rental income and high occupancy rates by boosting the supply of student properties in the UK.

In this blog, property operators and investors will get a chance to understand the high-demand regions in the UK, and which cities are the best for investing in student housing today.

Rise of Buy-to-Let Student Accommodation in UK

In recent times, the trend of building more PBSAs and repurposing other residential properties into student housing has been observed. Let’s explore some of the best areas to invest in student property UK as of 2024. Here is a countdown of the top five student cities to buy student accommodation:

#5 Manchester

Manchester is a famous city among students in the UK, marking its spot as the top choice for international students. This wonderful city hosts notable higher education institutes with a high-demand pool of students. Manchester, alongside London, has the largest demand pool of students from outside the UK, holding a significant supply share in the country.

The University of Manchester, the University of Salford, the University of Bolton, Manchester Metropolitan University and many others in are the best universities in Manchester. The top four universities mentioned above together host over 120,000 students, both UK and non-UK-born (Statista).

• Average property price: Manchester has an estimated average buy-to-let student property price of £254,985, according to RWInvest.
• Average rental yield: The city holds an average rental yield of 6.53% Y-o-Y. The top areas where students prefer to seek accommodation reach rental yields of nearly 7.7%, promising high returns for operators (Track Capital). With rental prices constantly on the rise due to high student demand, Manchester records almost no void periods in buy-to-let student accommodations.
• International population growth: Manchester has more than 41,000 international students travelling from countries including China, India, and others. Greater Manchester currently hosts over 21,000 international students from over 160 source countries (GMCA), enrolled for higher education.
• Best areas to invest in student property in the UK: The best places to invest in the UK include Manchester city centre, Salford, Fallowfield, Rusholme, Old Moat, and Ladybarn etc.
• Interesting fact: A high-demand territory covering four districts in Manchester is the top-yield area in the country. These spots observe an average rental yield of up to 12%, as observed by Track Capital.

#4 Nottingham

Nottingham is a great city for students, opening more doors for investment opportunities in the student housing realm, especially in the buy-to-let sector. The city records a diverse student population in top universities including the University of Nottingham, Nottingham Trent University, Nottingham University Business School, Nottingham College, etc.

There is a population of 55,000 full-time students enrolled in top universities across the city. Students make up 16.36% of the total population of Nottingham. As of 2024, HESA reported that 18% of the total students enrolled at the University of Nottingham are international students. This showcases the high demand for student accommodation in the city.

• Average property price: Buy-to-let property in Nottingham averages at a value of £253,133, as per RWInvest.
• High rental growth & return potential: Nottingham recorded a rental growth of 8.2% in 2024, highlighting high return potential with an average rental yield of 6.64%.
• Positive pipeline indication: Nottingham currently has nearly 10,000 PBSA beds in the pipeline, second only to London’s rate of growth for property developments.
• Accommodation preferences: International students usually prefer to stay in PBSAs in this city, according to a 2023 Savills Report. On the other hand, the city also records a high demand for Houses of Multiple Occupations (HMOs), popular amongst second-year students.
• Best spots to invest in student property in the UK: City centre, Lace Market, Old Market Square, Hyson Green, Radford, Lenton, etc. are high-yielding areas in Nottingham, optimal for buy-to-let student accommodation.
• Interesting fact: Nottingham City Council introduced the Nottingham Student Living Strategy 2023-2028, in collaboration with the University of Nottingham and Nottingham Trent University. This initiative aims to provide students with an enhanced student living experience, clubbed with local community support.

#3 Leeds

Leeds is the best city to invest in student property in the UK as students worldwide come to Leeds in search of quality education and vibrant living experiences. Tenants residing in Leeds usually prefer HMOs, private student residences or studios as their choice of housing.

Centrally located in Yorkshire, Leeds offers students convenient access to nearby universities like the University of Leeds, Leeds Trinity University, Leeds University, Leeds Beckett University, and others. Transforming into a top education hub, buy-to-let student accommodations have also rapidly increased. Here are a few factors driving positive investor interest in Leeds for student housing in the UK:

• Average property price: Leeds marks an average annual property price of £174,269, according to Zoopla.
• Student demand: There are more than 200,000 students enrolled at universities for higher education, one of the highest student populations in the UK (The Guardian). Steady demand brings forth high investment sentiment.
• Rental growth: Leeds witnesses a high rental yield growth of 12.1% in 2024 whereas the average stands at 6.67%. (C&W, Zoopla)
• PBSA supply: There is currently a total of 10,711 PBSA beds in the pipeline whereas 1,287 beds have already been delivered to cater to the supply. This city is among the largest five markets for student housing supply in the UK.
• Best areas to invest in student property in the UK: Headingly, Hyde Park, Holbeck, Meanwood, Morley, and more are some of the best places to invest in buy-to-let student accommodation in Leeds.
• Interesting fact: Surprisingly, the University of Leeds has a pool of more than 14,000 international students, travelling from 137 countries!

#2 Liverpool

Liverpool is a great student city for higher education in the UK. Students choose this city as a place to explore academic excellence, surrounded by bustling hotspots. Liverpool offers significant returns on buy-to-let student accommodation while maintaining its top spot as the most affordable location in the UK.

Liverpool is home to a diverse range of educational institutes, including the University of Liverpool, Liverpool Community College, Liverpool John Moores University, etc. The city observed a compound annual growth rate of 3.81%, with student numbers increasing rapidly (Cushman & Wakefield).

• Average property price: Liverpool marks an impressive average property price of £129,172, as per Zoopla.
• Rental yield: Popular areas in Liverpool record an average asking price of £146,704, observing a rental yield of 6.2%, according to Track Capital.
• Low student-to-bed ratio: Liverpool has the lowest student-to-bed ratio at 1.35:1, indicating high provision rates for student housing (C&W).
• International students: There is an international student pool of around 50,000 owing to the high quality of education and affordable living costs.
• Best places to invest in student property in the UK: Liverpool city centre, Merseyside, Kensington, Georgian Quarte, etc. are the best areas for buy-to-let student accommodation investment.
• Interesting fact: This city is home to the highest-yielding postcode in the UK, generating up to 10% rental returns (Totally Money).

#1 Glasgow

Glasgow is among the top cities preferred by students for experiencing a dynamic academic environment and a vibrant social life. Glasgow stands out as the best city to invest in student property in the UK, boasting a strong demand pool growth. Offering great properties and student flats in the UK, this city is shaping up to be a great pick for investors.

Students usually choose the University of Glasgow, City of Glasgow College, Glasgow Caledonian University, and others owing to enhanced education opportunities and integrated courses offered. Here are some of the reasons why buy-to-let student accommodations have witnessed a rise in Glasgow:

• Average property price: Glasgow records an average property price valuation of £173,000, offering operators a reasonable price to buy and let these properties.
• Sale of direct lets: Glasgow observed a sale of 30 student direct lets out of 38 total schemes (C&W). Property management groups are tapping into affordable property prices to get maximum returns.
• Major share of international students: Glasgow hosts a large number of international students (29.8% of its total student population), accounting for 27,510 students. (Colliers)
• Highest rental growth: Glasgow recorded the highest private sector rental growth in the UK at 19.4%. The student population has grown rapidly in the past two years, adding over 8,000 students, with pricing almost reaching outer London rents. (C&W, HESA)
• High rental yield: This city records an average rental yield of 8.08%, from properties located in popular student postcodes, usually valued at £211,729. Landlords in these prime areas generate up to £17,109 as annual rental income for buy-to-let student accommodations. (Paragon Bank)
• Best areas to invest in student property in the UK: Glasgow city centre, Townhead, Colelgelands, Hillhead, Dowanhill, etc.
• Interesting fact: Surprisingly, the University of Glasgow hosts approximately 27,000 students, making up 50% of Glasgow’s total student population! (Study.eu)

Buy-to-Let Student Accommodation: Poised for Growth in 2024?

Top UK cities with the highest student population will pave the way for buy-to-let student accommodation with favourable supply and demand dynamics. Apart from the cities mentioned in this blog, there are other cities with high return potential, including Belfast, Bristol, Edinburgh and many others.

Glasgow, Liverpool, Leeds, Nottingham and Manchester are projected to continue on their growth trajectory in the upcoming years. In spite of knowing these regions, operators usually face multiple challenges while entering this realm. For those seeking maximum returns on their student property portfolios, list your property with amber for a chance to unlock dynamic pricing strategies for steady rental incomes.

‍