With the city being home to two universities and boasts plenty of fun activities for young people to enjoy, it comes as no surprise that one in 15 homes in the entire city is student property.
Due to the large student population in the city, many people are looking to invest in properties they can then rent around town. This comes as a great investment opportunity, as the average rental yield in Newcastle sits at 5.9% and can go up to 8% in the most populated areas.
The best way to take advantage of these high rates is by owning a property in one of the city’s hotspots, where students are most likely to spend their time. This will allow you to set a higher rental price and find tenants fast. We have done some research and were able to come up with four areas students usually live in when they move to Newcastle so that you will know where to make your next investment.
An apartment in the City Centre is a gem for landlords, as they can capitalize on students from both universities. Northumbria and Newcastle University are both within walking distance from the City Centre, plus the area has lots of street shops, gyms, cafés, restaurants, and green spaces for students to enjoy. This area is where students first go looking when searching for a place to rent, so you can’t go wrong with an apartment right in the heart of the city.
Being one of the most popular student areas in the city because it is located very close to the City Centre, Jesmond is thriving on students. The area is considered a suburb and is filled with both families and students. It is located within a 5-minute metro ride from Newcastle University and is close to Northumbria as well. Students like Jesmond because they have plenty of things to do around and it has all the amenities you can possibly imagine. Because it is such a popular area, rental prices can sometimes go higher than in the City Centre, which makes for a higher rental yield.
Located halfway between Jesmond and the City Centre, Sandyford is a mainly residential area, perfect for students wanting to escape the nosy and jam-packed party lifestyle that prevails above the aforementioned regions. Newcastle students may find Sandyford a bit less convenient, but that does not mean they won’t keep their options open. However, for Northumbria students, Sandyford is a very convenient area because it is very close to their university.
Located east of the City Centre, Heaton surrounds Heaton Park and is targeted by students because rental properties are more affordable than the other options on our list. If you are looking to market your property at a higher rental price, you may want to focus on places such as the City Centre or Jesmond, but in terms of how fast you are going to find a tenant, Heaton may be a better option precisely due to the lower prices. Heaton is a more affordable area to live in altogether, with cheap student pubs and bars scattered all over. It may be a bit farther from the two universities, but there are plenty of transportation methods available, like the metro, for students to use.
If you'd like to find out more, call us on 0191 243 1000, or visit our Percy Street Office.