Newcastle Student Market Predictions 2024-2025: A Comprehensive Outlook

As we move into 2024, the Newcastle student rental market shows no signs of slowing down. With increasing demand from both domestic and international students, landlords can anticipate continued rent growth and a highly competitive environment. In this blog, we’ll delve into key rental trends, area-specific predictions, and the potential impact of the new Renters’ Rights Bill on student landlords.

Market Overview

Newcastle’s vibrant student population, coupled with a limited supply of high-quality rental properties, continues to drive up demand across the city. We expect this trend to persist, pushing rental prices higher compared to last year. Students are likely to start securing properties earlier, with marketing for summer 2025 move-ins beginning as soon as October 2024.

For landlords, this means acting swiftly to capitalise on the early demand. Properties in good condition, particularly those in prime locations, will be the most sought after. Let’s break down what to expect in some of Newcastle’s key student areas.

Rental Predictions by Area

Jesmond: £125 – £170 pppw

Jesmond remains the most desirable area for student accommodation in Newcastle. Known for its vibrant social scene and proximity to both Newcastle and Northumbria universities, the area attracts students willing to pay a premium for the convenience and lifestyle it offers. Rental prices here are expected to range from £125 to £170 per person per week (pppw), reflecting a significant increase from last year. Properties in top condition will achieve the higher end of this spectrum.

Sandyford: £105 – £130 pppw

Offering a balance between convenience and affordability, Sandyford continues to be a popular choice among students. With its close proximity to both universities and excellent transport links, rental prices are expected to range from £105 to £130 pppw, a modest increase from last year. The area’s blend of accessibility and value makes it an attractive option for those looking for quality accommodation without the higher Jesmond prices.

Heaton: £95 – £115 pppw

Known for its affordability, Heaton remains a go-to for students who value cost-effectiveness while staying relatively close to the city centre and universities. Anticipated rental prices will range from £95 to £115 pppw, with well-maintained properties and those near transport links commanding the upper end of this range.

City Centre: £120 – £170 pppw / Spital Tongues: £90 – £120 pppw

The city centre continues to be a hub for students drawn to its lively atmosphere and proximity to amenities and campuses. Rental prices here typically range from £120 to £170 pppw. Spital Tongues offers a more affordable alternative, with rents between £90 and £120 pppw. Both areas remain in high demand, particularly for well-located and well-maintained properties.

Will the Renters’ Rights Bill Affect Student Landlords?

The introduction of the Renters’ Rights Bill in the UK aims to enhance tenant protections and improve rental standards. For student landlords, this legislation could bring significant changes, particularly concerning tenancy agreements.

While the Conservative government’s original proposal suggested exemptions for students from the fixed-term tenancy provisions, the current Labour proposal does not clearly address this issue. The new bill plans to phase out fixed-term tenancies across all rental agreements, including those for students. Fixed-term agreements signed before the bill’s implementation will remain unaffected, so landlords are advised to secure these agreements as soon as possible to avoid complications.

Recommendations for Landlords

Given the anticipated changes, we recommend landlords enter the market early to take advantage of the existing fixed-term provisions and maximise returns. Additionally, maintaining high property standards and investing in renovations where necessary will help secure tenants willing to pay a premium.

Conclusion

As Newcastle’s student rental market evolves, staying informed and proactive is crucial for landlords. By understanding these trends and adapting to the upcoming legislative changes, you can position yourself for success in the year ahead.

For tailored advice or to discuss how these insights might impact your property portfolio, feel free to schedule a consultation.

If you’re considering exiting the rental market, we can assist in selling your property smoothly and efficiently. Get started with an instant valuation today or contact us for a detailed market analysis tailored to your needs.