Student Property Investment Sheffield
A thriving city with a strong reputation built on its industrial past, today Sheffield is leading the way in innovation and academia. The 4th largest city in the UK and a student population of over 60,000 makes Sheffield a very attractive prospect for investors interested in buying student accommodation.
Read on to learn about student property investment in Sheffield, including the past and projected performance of the student housing market, what makes Sheffield such a desirable city for students and where you can expect the best returns for your investment.
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Why Invest In Student Accommodation In Sheffield?
Sheffield is one of the most popular cities in the UK for higher education. Its two universities, Sheffield Hallam and the University of Sheffield attract over 60,000 students between them. And despite a global pandemic, student acceptance rates for universities across the UK are at an all time high.
Sheffield sees one of the largest net inflows of students anywhere in the country, with roughly 30,000 more students entering the city each year than leaving it, putting it ahead of other popular university destinations such as Liverpool and Oxford. This exemplifies the sustainable nature of demand for student accommodation in Sheffield.
There are roughly 22,000 purpose built student accommodation beds available in the city, with more developments in the works. This leaves plenty of opportunities for private landlords to market to the thriving student population.
Available Student Property Investments In Sheffield
What Attracts Students To Sheffield?
A major draw to the city for many students is the low cost of living. In fact the Royal Bank of Scotland Student Living Index 2021 named Sheffield the number one most affordable city in the UK for students.
A busy nightlife and culture scene offer plenty of socialising opportunities for students whilst the South Yorkshire location offers excellent accessibility to the Peak District and some of the most outstanding views of nature in the UK.
This is underpinned by two of the country’s most popular universities. Sheffield Hallam is a university very highly regarded for its excellent teaching standards whilst the University of Sheffield is a Russell-Group institution frequently ranked one of the top 25 universities in the country, with an esteemed engineering research and education department.
The Best Places In Sheffield For Student Property Investment
If investing in private property to rent out to students, it is important that you consider the potential growth value of the property. The graph on the left shows the change in property prices in Sheffield over the last 5 years.
Promisingly, areas with a dense population of students have shown the biggest growth in prices. The biggest increase is in the S10 postcode area, a location popular with students, covering suburbs like Broomhill, Broomhall, and Crookes.
The lowest rate of growth in the last 5 years has been the S5 postcode, covering the northern edge of the city, with an increase of 15% in average property prices.
Student demand is still a driving force behind rental yields in the city too. With the more popular student areas delivering higher yields.
City centre areas attracting large numbers of students and professionals produce the highest rental yields, with the S1 postcode area delivering an average 6.6% average yield, and the nearby postcodes of S2, S3 and S9 also showing very promising figures.
Rental yields drop significantly as you approach the southern edge of the city, with postcodes S7, S8 and S11 falling between 2.9% and 3.6%.
Invest In Purpose Built Student Accommodation (PBSA) In Sheffield
One of the most popular types of student property investment of recent years has been Purpose Built Student Accommodation. PBSA is appealing to investors for the simple fact that it is appealing to students. Designed with students in mind, PBSA is often in an ideal on or near campus location, with desirable amenities and building management taken care of, making it ideal for investors who cannot dedicate the time to hands on management of the property.
Whilst PBSA properties are often a slightly higher price for students, research has shown that students are usually willing to pay more for these benefits. The undersupply of student accommodation in Sheffield has lead to a demand for new PBSA, attracting a number of investors to the city.
Best Areas For Student Property Investment In Sheffield
The areas below contain a combination of factors such as high demand from students and locations close to amenities and campus, making them ideal for student accomodation investments.
City Centre
Probably the most obvious choice when deciding where to invest, the city centre is a desirable place to live for most students, located near to both universities, and situated ideally for transport links.
Driven by demand, properties in the S1 postcode are also able to command a premium, bringing in the highest rental yields in the city. Flats in the city centre sold for an average of £96,000 over the last year, whilst terraced properties averaged £302,000.
The city centre is also the location of choice for many new PBSA developers as well as a number of private properties marketed towards students.
Crookes
The suburb of Crookes is a very popular location for students from both universities. Investment opportunities here are the terraced houses and flats which line the streets. Although the only downside would be the hilly nature of the area, Crookes provides students with the opportunity to feel fully immersed in the student experience.
Average property prices in Crookes are £150,000
Ecclesall Road
A four mile stretch of road, Ecclesall Road is a lively area filled with independent bars, restaurants and shops. Private student houses and flats are also rented out in the area. Located slightly outside city centre, Ecclesall Road is popular mostly with students of Sheffield Hallam University, but also attract some University of Sheffield students too.
Ecclesall properties sold for an average of £359,200 over the last year, however when broken down by property type, flats sold for an average of £473,667, semi-detached properties for £282,000 and terraced houses for an average of £93,000
Broomhill
Broomhill is an area popular with University of Sheffield students due to its proximity to Endcliffe student village, Ecclesall Road and the city centre.
Situated in the S10 postcode, where investors have seen the highest increase in property value across the city, private accommodation is abundant in this area, making it a popular choice for second and third year students.
Average property prices in Broomhill are £307,319.
University Locations
As you can see from the map opposite, the locations of the universities are both quite central. Making city centre property ideally located for students. The cost of which could risk being prohibitive, however PBSA in the centre may meet the needs of students at a manageable cost.
To the west of the city centre you will find the more densely populated student areas, with location more to the north and west being popular amongst students at the University of Sheffield, and location more to the south of the centre popular with students at Sheffield Hallam University.
Frequently Asked Questions
Below you can find a range of common questions from previous investors. If you require specific details and advice please do not hesitate to contact us today on +44(0)203 627 3987 or via [email protected].
Whilst 2020 saw the worst effects of the global pandemic, with student PBSA occupation falling by up to 10%, the 2021/22 academic year appears to have bounced back healthily. Changes to A-level grading have lead to a record number of students being accepted into university, reaching an all time high of 2.015 million students for this academic year. Combined with soaring numbers of international students applying for places at UK universities the outlook for student property investment is extremely promising.
Sheffield’s universities are also two of the most populated universities in the country, with roughly 30,000 students each. This makes Sheffield one of the more secure places in the country to invest in student accommodation.
Depending on the type of investment you make, either investing in a private property or PBSA, rental yields in the city average between 4 and 7.5%, with the higher yields more likely in the city centre.
Some properties also offer a legally binding exit strategy, so you can invest with confidence, knowing that your money is safe.
Purpose built student accommodation is often available for much less than the average property costs, meaning that it can be a fantastic entry into property investment. Currently available PBSA starts at £64,950 or £75,000, far less than the average buy-to-let property price.
Average property prices for popular student areas by postcode are:
S1: £137,965
S2: £139,590
S3: £94,080
S10: £344,573
S11: £378,179
For a breakdown of specific areas please see ‘Best areas for student property investment in Sheffield’ above.
(all values taken from rightmove and accurate as of Sept 2021)
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