Student housing hotspots

Written by James Andrews, Senior Editor, Personal Finance28 June 2022

Student housing investment is a popular choice for those seeking to invest in the property market for a number of reasons. Student properties are often located in more affordable areas, which means that student landlords often enjoy higher rental yields.

students talking/gathering in a communal area with the title: student housing hotspots

Landlords of student properties also benefit from something other buy-to-let landlords don't, and that’s almost guaranteed demand. With new cohorts of students passing through universities each year, it’s usually not too difficult to find new tenants. Plus, with multiple occupants, in some cases if one tenant were to move out, you still have income from the remaining ones to continue paying.

So if you’re looking to compare buy-to-let mortgages and invest in student accommodation, which parts of the country have the biggest student property market?

Our buy-to-let experts have delved into where the best places to become a student landlord are in the UK. You can also check out our landlord guides for more information on renting out student housing.

Where in the UK has the most student housing investment by private landlords?

graphic containing the % of student housing owned by private landlords

1. Exeter, South West - 10.92%

Total properties: 59,329

Student properties: 6,479

The English local authority where student property makes up the biggest share of the total property market is Exeter. Here over one in ten properties are occupied by students.

The University of Exeter has two campuses in the Devon city. The university is part of the famous Russell Group of UK universities, making it one of the higher education hubs of the South West.

The high proportion of students living here means that Exeter is potentially a very lucrative market when it comes to student property investment.

2. Nottingham, East Midlands - 10.81%

Total properties: 142,675

Student properties: 15,422

Second is the city of Nottingham, which has a large student population of over 60,000, with 10.81% of properties occupied by students.

Nottingham has the highest concentration of higher education providers in the East Midlands, home to three different universities: the University of Nottingham, Nottingham Trent University and the Nottingham campus of the University of Law.

The large number of students in Nottingham means that there is large student demand for housing in the area, making it ideal for those looking to invest.

3. Newcastle upon Tyne, North East - 7.66%

Total properties: 136,635

Student properties: 10,470

Third place, albeit some way behind second, goes to Newcastle upon Tyne, where 7.66% of properties are occupied by students.

Large numbers of students from the universities of Newcastle and Northumbria call the city home, particularly in suburban areas such as Jesmond, Shieldfield and Gosforth.

Rank	Local authority	Region	Total properties	Student properties	Student properties (%)
1	Exeter	South West	59,329	6,479	10.92%
2	Nottingham	East Midlands	142,675	15,422	10.81%
3	Newcastle upon Tyne	North East	136,635	10,470	7.66%
4	Oxford	South East	62,490	4,569	7.31%
5	Leicester	East Midlands	142,003	10,233	7.21%
6	Canterbury	South East	69,376	4,095	5.90%
7	Cambridge	East of England	58,993	3,028	5.13%
8	York	Yorkshire & the Humber	92,114	4,578	4.97%
9	Sheffield	Yorkshire & the Humber	255,248	12,330	4.83%
10	Southampton	South East	109,902	5,182	4.72%
11	Bath and North East Somerset	South West	85,179	3,888	4.56%
12	Leeds	Yorkshire & the Humber	364,076	16,225	4.46%
13	Lincoln	East Midlands	46,592	2,063	4.43%
14	Coventry	West Midlands	148,218	6,468	4.36%
15	Liverpool	North West	234,529	10,191	4.35%
16	Islington	London	110,995	4,808	4.33%
17	Brighton and Hove	South East	131,581	5,677	4.31%
18	Tower Hamlets	London	142,728	5,885	4.12%
19	Runnymede	South East	37,603	1,410	3.75%
20	Portsmouth	South East	93,673	3,215	3.43%
21	Bristol	South West	206,073	6,779	3.29%
21	Lancaster	North West	65,922	2,166	3.29%
23	Birmingham	West Midlands	453,348	14,829	3.27%
24	Plymouth	South West	122,256	3,824	3.13%
25	City of London	London	7,636	235	3.08%
26	Norwich	East of England	68,141	2,090	3.07%
27	Manchester	North West	241,190	7,291	3.02%
27	Camden	London	111,968	3,385	3.02%
27	Preston	North West	65,482	1,975	3.02%
30	Hammersmith and Fulham	London	92,148	2,685	2.91%
31	Guildford	South East	59,895	1,716	2.87%
32	Charnwood	East Midlands	77,264	2,213	2.86%
33	Warwick	West Midlands	66,968	1,904	2.84%
34	Colchester	East of England	84,266	2,287	2.71%
35	Southwark	London	144,584	3,612	2.50%
36	Reading	South East	74,523	1,780	2.39%
36	Welwyn Hatfield	East of England	49,639	1,184	2.39%
38	Kensington and Chelsea	London	89,542	2,106	2.35%
39	Hackney	London	118,597	2,587	2.18%
40	Middlesbrough	North East	64,833	1,394	2.15%
41	Newcastle-under-Lyme	West Midlands	57,012	1,212	2.13%
42	Bournemouth, Christchurch and Poole	South West	187,858	3,664	1.95%
43	Durham	North East	250,232	4,731	1.89%
44	Westminster	London	129,380	2,418	1.87%
45	Lambeth	London	146,694	2,663	1.82%
46	Winchester	South East	55,201	999	1.81%
47	Kingston upon Hull	Yorkshire & the Humber	123,367	2,214	1.79%
48	Salford	North West	125,204	2,177	1.74%
49	Brent	London	127,482	2,193	1.72%
49	West Lancashire	North West	50,912	877	1.72%
49	Worcester	West Midlands	46,975	806	1.72%

Where in the UK has the highest number of student properties overall?

graphic with the highest number of student properties overall in the UK

1. Leeds, Yorkshire & the Humber - 16,225

Looking solely at the overall number of student accommodation properties, it’s Leeds that is home to the most, with over 16,000.

Leeds has one of the biggest student populations in the country, with five universities including the University of Leeds and Leeds Beckett.

2. Nottingham, East Midlands - 15,422

As well as having the second-highest percentage of student property, Nottingham also has the second-biggest student market overall, with over 15,000 properties.

It’s estimated that over 60,000 people attend the three universities in the city, with a fairly even split between the University of Nottingham and Nottingham Trent.

3. Birmingham, West Midlands - 14,829

Another Midlands city takes third place, with Birmingham being home to just under 15,000 student accommodation properties in total.

Birmingham has the biggest student population outside of London, home to five universities, as well as major campuses of the University of Law and BPP University.

Rank	Local authority	Region	Student properties
1	Leeds	Yorkshire & the Humber	16,225
2	Nottingham	East Midlands	15,422
3	Birmingham	West Midlands	14,829
4	Sheffield	Yorkshire & the Humber	12,330
5	Newcastle upon Tyne	North East	10,470
6	Leicester	East Midlands	10,233
7	Liverpool	North West	10,191
8	Manchester	North West	7,291
9	Bristol	South West	6,779
10	Exeter	South West	6,479
11	Coventry	West Midlands	6,468
12	Tower Hamlets	London	5,885
13	Brighton and Hove	South East	5,677
14	Southampton	South East	5,182
15	Islington	London	4,808
16	Durham	North East	4,731
17	York	Yorkshire & the Humber	4,578
18	Oxford	South East	4,569
19	Canterbury	South East	4,095
20	Bath and North East Somerset	South West	3,888
21	Plymouth	South West	3,824
22	Bournemouth, Christchurch and Poole	South West	3,664
23	Southwark	London	3,612
24	Camden	London	3,385
25	Portsmouth	South East	3,215
26	Cambridge	East of England	3,028
27	Hammersmith and Fulham	London	2,685
28	Lambeth	London	2,663
29	Hackney	London	2,587
30	Westminster	London	2,418
31	Colchester	East of England	2,287
32	Kingston upon Hull	Yorkshire & the Humber	2,214
33	Charnwood	East Midlands	2,213
34	Brent	London	2,193
35	Salford	North West	2,177
36	Lancaster	North West	2,166
37	Kensington and Chelsea	London	2,106
38	Norwich	East of England	2,090
39	Lincoln	East Midlands	2,063
40	Preston	North West	1,975
41	Kirklees	Yorkshire & the Humber	1,927
42	Cheshire West and Chester	North West	1,919
43	Warwick	West Midlands	1,904
44	Reading	South East	1,780
45	Ealing	London	1,732
46	Guildford	South East	1,716
47	Sunderland	North East	1,682
48	Cornwall	South West	1,631
49	Lewisham	London	1,514
50	Derby	East Midlands	1,468

Which universities have the most students living in uni-owned accommodation?

graphic containing the universities that have the most students living in uni-owned accommodation

1. The University of Oxford - 79%

The university where the most students choose to live in accommodation maintained by the provider is also of the oldest and best in the country.

79% of students at the University of Oxford live in properties run by the university itself. The various colleges of the University provide accommodation to all undergraduate students for their first year and at least one other year of their course.

2. The University of Cambridge - 77.3%

The other “Oxbridge” university comes in second place, with 77.3% of students at Cambridge living in university-owned accommodation.

Like Oxford, Cambridge offers accommodation through its colleges, owning a number of flats and small houses throughout the city.

3. Cranfield University - 55.7%

Some way behind the two Oxbridge universities is Cranfield, where 55.7% of students live in university-owned accommodation.

Cranfield is a postgraduate university specialising in science, engineering, design, technology and management.

Rank	HE provider	Total full-time students	Students living in university-owned accommodation Total	Students living in university-owned accommodation Percentage
1	The University of Oxford	20,595	16,260	79.00%
2	The University of Cambridge	20,030	15,490	77.30%
3	Cranfield University	2,415	1,345	55.70%
4	Oxford Brookes University	14,655	5,955	40.60%
5	Writtle University College	690	280	40.60%
6	The University of St. Andrews	10,435	4,045	38.80%
7	Hartpury University	1,965	745	37.90%
8	The University of Surrey	15,245	5,620	36.90%
9	The University of Warwick	23,925	8,790	36.70%
10	The University of Lancaster	15,975	5,750	36.00%
11	University of Durham	19,665	7,000	35.60%
12	Loughborough University	17,255	5,800	33.60%
13	Royal Agricultural University	1,085	360	33.20%
14	University of Nottingham	33,655	10,145	30.10%
15	Aberystwyth University	6,075	1,815	29.90%
16	The University of Kent	16,490	4,900	29.70%
17	London School of Economics and Political Science	12,940	3,820	29.50%
18	The University of Essex	16,055	4,675	29.10%
19	Newcastle University	26,340	7,480	28.40%
20	Falmouth University	5,240	1,465	28.00%
21	The University of Portsmouth	24,065	6,710	27.90%
22	Harper Adams University	2,480	690	27.80%
23	Coventry University	32,810	8,890	27.10%
24	The University of Reading	15,320	4,150	27.10%
25	The University of York	20,015	5,250	26.20%
26	Rose Bruford College of Theatre and Performance	695	170	24.50%
27	Royal Holloway and Bedford New College	11,390	2,785	24.50%
28	The University of Chichester	4,685	1,135	24.20%
29	The University of Southampton	20,130	4,870	24.20%
30	The University of Leeds	34,745	8,325	24.00%
31	Cardiff University	28,265	6,680	23.60%
32	The Arts University Bournemouth	3,450	815	23.60%
33	Brunel University London	16,390	3,810	23.20%
34	Bangor University	8,595	1,975	23.00%
35	Edge Hill University	11,770	2,675	22.70%
36	The University of Exeter	26,900	6,105	22.70%
37	The University of Winchester	7,345	1,590	21.60%
38	Liverpool Hope University	5,175	1,105	21.40%
39	The University of Edinburgh	33,940	7,190	21.20%
40	The University of Bath	16,380	3,335	20.40%
41	University of Hertfordshire	22,505	4,445	19.80%
42	The University of Lincoln	14,120	2,785	19.70%
43	York St John University	6,965	1,325	19.00%
44	Canterbury Christ Church University	13,175	2,495	18.90%
45	Imperial College of Science, Technology and Medicine	19,695	3,670	18.60%
46	The University of Stirling	11,705	2,145	18.30%
47	Swansea University	19,375	3,540	18.30%
48	The University of Northampton	11,245	2,035	18.10%
49	Stranmillis University College	885	160	18.10%
50	University of Gloucestershire	6,955	1,235	17.80%

Which universities have the most students living in private sector halls?

graphic containing the universities that have the most students living in private sector halls?

1. The University of Lincoln - 38.9%

When it comes to halls that are privately owned and managed, it’s Lincoln where students are most likely to take up this option.

38.9% of students at the University of Lincoln choose to live in privately-owned halls away from the main campus.

2. Royal College of Music - 37.9%

Not too far behind is the Royal College of Music where 37.8% of students live in privately-owned halls.

The College is one of the leading conservatoires in the country and has its own student halls for 500 people, with many choosing to live in private halls elsewhere.

3. Royal Northern College of Music - 33.5%

Another performing arts school comes in third place, with just over a third of students at the Royal Northern College of Music living in private halls.

Located in Manchester, the College is one of four conservatoires associated with the Associated Board of the Royal Schools of Music.

Rank	HE provider	Total full-time students	Students living in private sector halls Total	Students living in private sector halls Percentage
1	The University of Lincoln	14,120	5,495	38.90%
2	Royal College of Music	870	330	37.90%
3	Royal Northern College of Music	880	295	33.50%
4	The Liverpool Institute for Performing Arts	950	295	31.10%
5	Leeds Arts University	2,240	690	30.80%
6	Bournemouth University	15,495	4,410	28.50%
7	Liverpool John Moores University	22,405	6,330	28.30%
8	The University of Liverpool	26,455	7,390	27.90%
9	Leeds Conservatoire	1,530	425	27.80%
10	Norwich University of the Arts	2,555	705	27.60%
11	Royal Conservatoire of Scotland	1,205	310	25.70%
12	University of Plymouth	16,030	4,085	25.50%
13	Sheffield Hallam University	26,520	6,035	22.80%
14	The University of Bristol	28,140	6,175	21.90%
15	Aberystwyth University	6,075	1,295	21.30%
16	Leeds Beckett University	19,815	4,160	21.00%
17	Aston University	13,055	2,740	21.00%
18	The University of Aberdeen	12,570	2,570	20.40%
19	SOAS University of London	4,510	890	19.70%
20	The University of Manchester	40,305	7,715	19.10%
21	University of the Arts, London	20,475	3,880	18.90%
22	University of Nottingham	33,655	6,300	18.70%
23	Newcastle University	26,340	4,900	18.60%
24	De Montfort University	23,895	4,370	18.30%
25	The Nottingham Trent University	34,190	5,915	17.30%
26	Birmingham City University	25,195	4,175	16.60%
27	Liverpool School of Tropical Medicine	155	25	16.10%
28	The University of Huddersfield	14,580	2,310	15.80%
29	The University of Bradford	8,745	1,370	15.70%
30	The University of Hull	12,250	1,735	14.20%
31	Plymouth College of Art	1,085	150	13.80%
32	Cardiff Metropolitan University	10,200	1,385	13.60%
33	Solent University	10,425	1,370	13.10%
34	The University of Southampton	20,130	2,555	12.70%
35	The University of York	20,015	2,415	12.10%
36	Cardiff University	28,265	3,380	12.00%
37	Goldsmiths College	8,460	945	11.20%
38	The Manchester Metropolitan University	30,195	3,275	10.80%
39	Trinity Laban Conservatoire of Music and Dance	1,115	120	10.80%
40	The Royal Veterinary College	2,290	245	10.70%
41	The University of Exeter	26,900	2,675	9.90%
42	The University of Leicester	14,635	1,395	9.50%
43	Conservatoire for Dance and Drama	1,020	95	9.30%
44	The University of Central Lancashire	22,115	2,030	9.20%
45	The University of Sussex	18,350	1,615	8.80%
46	The University of Leeds	34,745	2,880	8.30%
47	City, University of London	18,045	1,450	8.00%
48	University of Northumbria at Newcastle	26,570	2,085	7.80%
49	Royal Academy of Music	800	60	7.50%
50	The University of Glasgow	31,450	2,335	7.40%

Tips for landlords of student properties

Make sure to budget for the extra wear and tear that comes with student properties. You’ll probably need to pay for professional cleaners when each group of tenants moves out.
You’ll also need to budget for furnishings and white goods, as student properties are expected to be furnished.
Make sure that you’re investing in an area with lots of students, such as those outlined above, and look into potential rental yields. Many of the best yields are in university towns in the North, where property is usually cheaper.
Do your research around HMOs (houses in multiple occupation). These are properties with three or more tenants from different households and have their own sets of rules that you must abide by. You’ll probably need a special licence to let one of these.
You’ll also have to take this into consideration when it comes to insurance, making sure that your policy fully covers an HMO.
Make sure that your tenancy agreement is watertight and covers all the bases such as how much notice is required if tenants want to move out.
Consider asking for guarantors before reaching an agreement. You may even ask each tenant to provide their own guarantor.

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FAQ's

How much is student property?

According to a survey by Unipol and the NUS, the average cost of student property in the UK for 2021-2022 was £166 a week in purpose built student accommodation like halls.

Privately rented student property stood at £155 a week for an en-suite room and £228 for a studio.

Of course, the amount that you’ll pay for your student property will vary a lot depending on where you’re studying and for example will cost a lot more in London.

Is buying student housing a good investment?

Buying student housing has its pros and cons but can definitely turn out to be a good investment. It’s proved to be very popular with investors in recent times which suggests that there’s definite value in the student housing market.

Student housing tends to offer greater yields due to the cheaper purchase prices and higher rent prices. This means that student housing can still be a good investment even if the property market dips more generally.

You do need to be aware of investing in student property though that they require higher levels of upkeep.

Are student rentals profitable?

Student properties are certainly more affordable than regular properties, due to the fact that they’re usually located outside of city centres. On top of this, students usually pay higher rents than other tenants, so on the face of it, student rentals are definitely profitable. Plus, you always have a steady demand, with a new group of potential tenants coming through every year.

But while student rentals can definitely be profitable, it’s worth remembering that they often have higher maintenance costs. In addition, your property will probably lie empty during the summer months, during which time you may receive no rent or a reduced rate.

Does student accommodation increase in value?

Like any other property, student accommodation is only worth as much as people are willing to pay for it.

In the case of student properties though, this generally does mean that they will increase at a similar rate to other properties.This is because of the steady demand that they experience due to there always being a new cohort of students looking for places to live.

Of course, student properties are subject to the same fluctuations in the market as any other property, but there’s no reason why they shouldn’t increase in value.

Learn more about student housing...

Whether you're a student looking for a place to rent or a landlord trying to rent out a property, read our property experts' guides to learn more about all things student rentals.

What home insurance do students need?

If you are a student, you’ll likely have expensive belongings that you need to protect, whether you live in student halls or with friends. We explain how to get the right student home cover.

Student renting: how to protect your deposit

Moving into a privately rented property can be exciting but you need to be careful not to lose out from day one. Here is how to protect your deposit from avoidable deductions.

HMO mortgages

If you want to buy a property to let to individual tenants you’ll need a specialist mortgage. We explain what you need to know about HMO mortgages.

Methodology and sources

The total number of dwellings, as well as the number that are occupied by students, were sourced from the Department for Levelling Up, Housing and Communities and the Ministry of Housing, Communities & Local Government’s Council Taxbase 2021.

Specifically, the total number of dwellings and the number of dwellings that are exempt from council tax under class M and N as of October 4th 2021 were taken.

Class M refers to a hall of residence provided predominantly for the accommodation of students, while class N refers to a dwelling that is occupied only by students, the foreign spouses of students, or school and college leavers.

This was then used to calculate which local authorities have the highest percentage of student houses in England.

The number of students living in provider-maintained property and private-sector halls were sourced from HESA and relate to full-time and sandwich HE student enrolments for the 2020/21 academic year.

About James Andrews

James has spent the past 15 years writing and editing personal finance news, specialising in consumer rights, pensions, insurance, property and investments - picking up a series of awards for his journalism along the way.

View James Andrews's full biography here or visit the money.co.uk press centre for our latest news.