Newcastle, UK

The city with 70% PBSA rental premiums

53,000 students

Newcastle is home to two world-class universities

5:1 UNDERSUPPLY

The city has just 10,000 purpose-built beds for its students

70% PREMIUMS

PBSA in Newcastle carries the UK’s second highest rental premiums

GLOBAL APPEAL

30% uplift in international student numbers in less than 10 years

DEVELOPMENTS

NEWCASTLE INVESTMENT OVERVIEW: HIGH DEMAND. HIGH YIELDS.

One of the UK’s key investment cities. Newcastle is famous for its nightlife, its football and, among the global investor community, it’s fast becoming renowned for its returns, too. Two universities and 50,000 students, yet Newcastle has less than 10,000 dedicated student beds to accommodate them. The result is a PBSA market with the second highest rental premiums in the country. And with a fast accelerating international student population, Newcastle’s investment potential shows few signs of declining anytime soon.

HIGH ACADEMIC QUALITY

Over 50,000 students call Newcastle home. Two universities – one a member of the elite Russell Group, the other the largest higher education institution in the north-east – underpin Newcastle’s status as a prestigious student investment city. The worldwide appeal of academic excellence and an award-winning university experience attract 9,000 overseas students each year. However, the city’s excellence doesn’t extend to its supply of student accommodation.

70% PBSA PREMIUMS

Today’s increasingly international student population wants PBSA, but in Newcastle, supply tops out at 10,000 purpose-built student beds. That’s a 5:1 demand to supply ratio. It means that Newcastle PBSA commands a rental premium of 70% – the joint highest in the UK. Given the strong supply-demand criteria, rents are only going to increase – at a rate of 6%, which is almost twice the wider UK residential average.

RESTRICTED RENTAL SUPPLY

Wider property investment in Newcastle is underpinned by this massive student market. Almost one in two students choose to stay in the city after their degree, giving it the highest retention rate outside of London. As the number of students staying in the city has increased by 8% since 2011, the Office for National Statistics predicts the population of 25 to 44 year olds living in Newcastle will increase, raising demand for rented accommodation further.

Newcastle Housing Market

Want to know how Newcastle and other cities are performing in the UK property market? Download our free in-depth guide, updated quarterly for an exclusive review.

Request the latest insight below.

Subscribe to our newsletter

Please enter your name and email address

There was an error with your subscription. Please try again.
Thank you for subscribing. You will now be fully informed of all investment property news and insights.