Student HMOs are a cornerstone of Newcastle’s rental market. Areas such as Jesmond, Sandyford and Heaton continue to attract strong demand, but in 2025 we are seeing clear changes. Rapid rent increases in recent years have lifted expectations. Students paying more now expect properties to match that value, and HMOs that feel dated are beginning to struggle.
What students want in 2025
We are no longer in a market where any property in the right postcode will let easily. Groups are looking for:
- Modern kitchens with plenty of storage, good appliances and room to eat together
- Clean, updated bathrooms, ideally more than one in larger houses
- Comfortable communal space, with proper seating so the house feels like a home
- Bills included packages, which simplify budgeting for groups
- Good general upkeep, from fresh décor and flooring to working heating and lighting
These are the features that make our HMOs stand out and secure early lets.
Why upgrades are now essential
In previous years, older houses in Jesmond or Sandyford would let quickly regardless of condition. Today, groups are walking past dated stock and choosing properties that feel modern and well-maintained. Landlords relying on tired interiors are already seeing longer voids and pressure to reduce rent.
Investing in upgrades is no longer optional, it is the only way to stay competitive in the student HMO market.
Compliance and licensing
Alongside presentation, compliance remains critical. HMO licensing rules, fire doors, smoke and heat detectors, gas and electrical safety checks, and clear tenancy paperwork are all non-negotiable. The Renters’ Rights Bill is expected to increase scrutiny, so staying ahead now will avoid costly problems later.
For landlords who would like peace of mind, our property management service includes full compliance checks.
Local trends
Jesmond and Sandyford remain the strongest student locations, but competition among landlords has never been higher. Houses that are freshly upgraded are letting fast, while dated ones sit empty well into the season. Heaton offers a slightly lower-cost entry point, and when presented well, properties there achieve strong yields.
Our view
Student HMOs in Newcastle remain an excellent investment, but expectations have shifted. Rising rents have raised the bar, and only landlords who modernise their properties and stay compliant will continue to achieve the best results.
If you would like advice on where to invest in upgrades that deliver the biggest return, speak to us about our Property Health Check — we can identify the changes that will make the difference between an empty house and a fully booked year.