Soaring student rents - agency insight into university city market

Student landlords have seen record increases in rental prices of over 20 per cent in some cases, according to a lettings agency. 

Newcastle-based Walton Robinson says the annual rise for 2022/23 is set to be the highest ever. 

Newcastle has an unusually high student population - around 50,000 - majoring on two universities. Back in 2018 it was reported locally that one in every 15 houses in the city was student accommodation, a figure unmatched in the UK at the time with the exception of Exeter.

Walton Robinson lettings manager Kyle Dickson says: “When we started marketing properties for 2022/23, we’d already seen a 70 per cent increase on student enquiries, compared with the last academic year.

“With more students attending Newcastle’s universities this year, the increase in demand has had a knock on effect on sales prices, particularly for homes of multiple occupancy, and subsequently the rental prices for student accommodation.”

Rental increases have been shown to be higher on managed properties, where an agency can have more influence on the condition of the property and any refurbishment works. One saw a rental increase of 21 per cent, and another of 20 per cent.

General manager Amy Gibson adds: “A key factor to a landlord achieving a higher rental income is ensuring that properties are consistently kept to a high standard. The increased demand of supply shows that now is the time to make these improvements in order to drive the rents upwards.’’