Cardiff, Nottingham and Manchester dominate landlord investment as yield-driven buying continues to favour university towns, according to new Paragon Bank lending data.
The specialist lender’s analysis of 2025 completions reveals CF24 in Cardiff as the top buy-to-let hotspot, followed by Nottingham’s NG7 and Manchester’s M14 – each home to large student populations and well-established rental ecosystems.
Top 10 buy-to-let postcodes for 2025
Paragon’s data shows terraced housing remains the most common purchase type across the hotspots, reflecting landlord appetite for flexible, good-value properties that suit students, sharers and young professionals.
The full top ten:
- CF24 – Cardiff (9.06% yield) – Prime student district serving Cardiff University and Cardiff Metropolitan
- NG7 – Nottingham (8.45% yield) – University of Nottingham heartland with strong year-round demand
- M14 – Manchester (8.23% yield) – Fallowfield and surrounding areas, established student corridor
- LE11 – Loughborough (8.67% yield) – Dominated by Loughborough University demand
- GL1 – Gloucester (9.66% yield) – Strong yields with lower entry prices than nearby Bristol
- PL4 – Plymouth (9.78% yield) – Highest yielding postcode, serving Plymouth University
- HU5 – Hull (9.01% yield) – Affordable stock with consistent student tenant base
- BD7 – Bradford (8.89% yield) – University of Bradford catchment with competitive prices
- LS6 – Leeds (7.82% yield) – Headingley and surrounding student areas
- S11 – Sheffield (7.54% yield) – Endcliffe and Ecclesall Road student belt
Yields outperform southern markets
Plymouth’s PL4 delivered the best returns at 9.78%, followed by Gloucester’s GL1 at 9.66% and Hull’s HU5 at 9.01%. Seven of the top ten all delivered yields in excess of 8% – significantly outperforming typical southern England returns.
This follows Landlord Knowledge’s February report on where landlords are buying and selling, which showed northern cities attracting increased investor activity as southern yields compress under higher purchase prices.
What this means for landlords
- If you’re targeting yield: Plymouth, Gloucester and Hull all exceed 9% – but verify local tenant demand and void risk before committing.
- Watch for: Student markets can be seasonal with summer voids. Factor in furnished requirements and higher turnover costs.
- Bottom line: University towns continue to deliver the strongest yields, but landlords should stress-test assumptions against potential changes to student number caps or visa rules.
Editor’s view
The data confirms what many portfolio landlords already know: if you want yield, head north or target student towns. But Paragon’s figures also highlight concentration risk. A single policy change on international students or purpose-built student accommodation could shift these markets quickly. Diversification across tenant types remains sensible.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 17 March 2026
Sources: Paragon Bank
Related reading: Hamptons reveals where landlords are buying and selling in 2026
