1. Key Takeaways at a Glance
- Rental growth easing but still strong: After double-digit rent hikes in 2023 and 2024, driven by housing shortages and record student demand, 2025 rental growth is settling to around 5% for shared student houses (HMOs). This moderation reflects affordability limits after rapid rises, not a fall in demand.
- Demand still outstrips supply: Over 42,000 students across Newcastle & Northumbria universities keep pressure on limited private rental stock, with homes letting earlier each year.
- Legislation changes coming: The Renters’ Rights Bill will phase out fixed-term tenancies, introduce rolling contracts, and bring stricter compliance rules from late 2025/early 2026.
- Opportunities for landlords: Early marketing, strategic rent reviews, and planning for the new tenancy framework will help protect yields and minimise risk in the year ahead.
2. Student Rental Pricing – Year-on-Year Comparison
| Area | 2023 Avg (pppw) | 2024 Avg (pppw) | 2025 Avg (pppw) | 2025 Trend vs 2024 | Market Notes |
|---|---|---|---|---|---|
| Jesmond | £110–£150 | £120–£165 | £125–£170 | ↑ ~5% growth | Most popular area, premium houses let earliest |
| Sandyford | £95–£120 | £100–£135 | £105–£145 | ↑ ~5% growth | Balance of price & location, still strong demand |
| Heaton | £85–£105 | £90–£115 | £95–£120 | ↑ ~5% growth | More affordable, growing popularity with Northumbria |
| Spital Tongues | £80–£105 | £85–£115 | £90–£130 | ↑ ~5% growth | Close to campus, smaller area, fills up quickly |
Key Insight:
- The steepest rent hikes came in 2023–24 as demand surged and supply tightened.
- 2025’s +5% growth suggests rents are stabilising but remain at record highs.
- Landlords with well-presented properties in Jesmond & Sandyford can push toward the upper end of these ranges.
3. Student Demand & University Intake
Newcastle’s student population underpins the city’s rental market, and the numbers remain consistently high:
| University | Total Students (2025) | International Students | Trend vs Previous Years |
|---|---|---|---|
| Newcastle University | ~27,000 | ~5,000 (24%) | Slight dip in 2024 intake due to visa changes but still historically high |
| Northumbria University | ~33,000–35,000 | ~8,000–9,000 (25%) | Domestic intake strong, international recovering after 2024 dip |
| Combined Total | 42,000+ | ~25% overall | Steady growth over last decade despite recent fluctuations |
Key insights for landlords:
- More students, fewer houses: Over 42,000 students compete for a shrinking private rental pool as some landlords exit the market.
- Early bookings: Groups now secure houses before Christmas for the next academic year, especially in Jesmond and Sandyford.
- International recovery: 2024 saw a dip due to visa rules, but numbers are expected to stabilise into 2025, sustaining rental demand.
4. Market Trends for 2025
Several key trends are shaping Newcastle’s student rental market this year:
1. Earlier letting cycles
- Houses in Jesmond and Sandyford are letting as early as October–November for the following academic year.
- Students book before Christmas to secure the best properties, so landlords who market early achieve the highest rents.
2. Housing shortage driving competition
- Newcastle has lost over 1,400 private rental homes in the last five years as some landlords left the market or switched to other uses.
- With 42,000+ students and fewer properties, competition remains fierce, keeping occupancy rates high.
3. Purpose-Built Student Accommodation (PBSA) can’t meet demand
- New blocks add supply but serve mainly first-year and international students at higher rents.
- Shared houses (HMOs) remain the most popular option for second- and third-year students.
4. Rising expectations from students
- Higher rents mean students expect well-maintained, modern interiors and responsive management.
- Landlords investing in quality finishes and clear communication typically achieve stronger rents and fewer voids.
5. Renters’ Rights Bill – What Student Landlords Need to Know
The Renters’ Rights Bill is set to become law in late 2025, reshaping how student rentals operate in Newcastle and across England.
Key Changes
| Change | What It Means for Student Landlords |
|---|---|
| End of fixed-term ASTs | All student tenancies become rolling contracts |
| New student-specific eviction ground (Ground 4A) | Allows landlords to regain possession at the end of each academic year if they give 4 months’ notice. |
| Tenant notice periods | Students can leave with 2 months’ notice at any time. |
| Rent bidding ban | Properties must be advertised with one rent price, no competitive offers above the asking price. |
| Rent increase rules | Rents can only rise once per year, and tenants can challenge above-market increases. |
| Compliance requirements | Landlords must register properties, join the Ombudsman scheme, and meet Decent Homes Standards. |
| Implementation timeline | Law expected late 2025, with phased rollout through 2026. |
What This Means for You
- Rolling contracts: You’ll need to plan around shorter notice periods and prepare for mid-year vacancies.
- Ground 4A protections: Gives back some control by allowing properties to be reclaimed each summer for the next student group.
- Compliance ready: Register properties early and keep paperwork up to date to avoid penalties when the new rules start.
6. What Landlords Should Do Now
1. Review and adjust rents
- Benchmark against the 2025 pppw ranges for your area.
- Factor in the 5% increase this year while keeping rents competitive to avoid voids.
Discuss your portfolio with Bowson
2. Market properties earlier
- Launch listings by October–November for the following academic year.
- Capture early demand to secure the best tenants and strongest rents.
Get a market rent update for free
3. Prepare for rolling contracts
- Build processes around Ground 4A so you can regain possession each summer.
- Adjust tenancy agreements and timelines now to avoid confusion later.
4. Stay ahead on compliance
- Register properties, join the Ombudsman scheme, and ensure Decent Homes Standards are met before the law comes in.
5. Improve property standards
- Higher rents mean higher expectations: invest in modern finishes, good maintenance, and responsive management to stay competitive.
6. Consider exit or expansion options
- Demand remains strong; some landlords are selling into a buoyant market, while others are expanding portfolios to meet rising student numbers.
