Buy-to-let landlords are attracting yields of over ten per cent in some of the country's largest university towns, according to new research.

According to a poll of delegates to the Property Investor Show, Nottingham, Durham, Manchester, Hull and Bangor are the best student towns to buy rental property.

Nottingham leads the way when it comes to buying rental property.

With low average prices and higher rents, Nottingham University offers the highest return on investment - with average rental yields increasing by 1.13 per cent since last year to 10.19 per cent.

Durham follows close behind with average rental yields of 9.23 per cent.

Manchester, Hull and Bangor complete the top five most profitable towns, with student landlords in these towns achieving an annual rental yield in excess of seven per cent.

"Investors may think that they are buying into a weak market, but as this research shows rental yields are on the increase and buy-to-let investors have a great opportunity to capitalise on the increasing demand for student accommodation, whilst taking advantage of lower house prices," said Nick Clark, managing director of the Property Investor Show.

"There will always be a sustained demand for properties which will produce a far greater annual rental yield than the average buy-to let property.

"In fact, it could be as much as six to seven per cent more."

The worst performing towns are Warwick and Crewe with rental yields of 3.92 per cent for each town.

The average rental yield of 7.9 per cent for the top ten university towns outstrips the UK average of 6.4 per cent for other buy-to-let properties, as property prices drop by 17 per cent and rents increase by eight per cent since this time last year.

However, potential buy-to-let landlords may find searching for an appropriate deal challenging, after research from MoneySupermarket found the number of available mortgages in the sector has fallen from 4,384 to 307 in the past year.