Leeds estate agent, HOP, also identified another emerging trend. Homes with between one and four bedrooms are also going to be most popular according to the firm, which has offices in Leeds city centre, Horsforth and Pudsey.
This summer, research by money.co.uk, which analysed the UK’s biggest university towns and cities, put Leeds in the top spot in terms of student properties, with 16,225. This was closely followed by Nottingham with 15,422 properties. However, despite Leeds being home to one of the country’s biggest student populations, money.co.uk also put The University of Leeds in a lowly 30th place in a league table showing which universities have the most students living in uni-owned accommodation.
Data from student housing charity, Unipol, also reveals a 30% year-on-year increase in graduate students staying in Leeds, and with many continuing to live in the same areas, it means there are thousands more people competing for rental stock.
Josh Buckley, lettings branch manager at HOP’s Leeds city centre office, comments: “The appeal of Leeds as a top university city shows no sign of waning, with both The University of Leeds and Leeds Beckett continuing to experience very high demand.
“While this is great news for the city’s student property market, it’s an ever-changing landscape and landlords must keep abreast of market demand, in order to secure good tenants early. In Leeds, the city’s student housing stock is now released in November, even though first-year students have only just started university and might not know who they want to live with next year, but ultimately this is driven by demand.
“In the coming weeks we’ll be launching more than 450 student homes, predominantly using virtual tours, full floorplans, enhanced pictures and detailed descriptions, and there’s no doubt students will begin reserving immediately.
“With energy costs soaring, students want all-inclusive properties that include electric and gas, as well as fast broadband, water, TV licence and insurance, as part of their monthly rental payment. For most students, it now seems very risky to rent a home without having utilities included and 72% of students now expect to have their utilities built into their rent. We’ve also worked hard to secure competitive tariffs so we can guarantee costs until June 2024.”
He adds: “Another trend we’ve seen in recent years is the shift towards smaller bedroom numbers. Two and three-bedroom homes are particularly popular, whereas houses with six, seven and eight bedrooms, require top-notch marketing to secure the big rental income that these houses warrant. Lots of landlords are even dividing larger houses into two apartments or converting smaller bedrooms into en-suite bathrooms, in response to this.
“Hyde Park and Woodhouse remain the city’s most sought-after locations because they offer easy access to the main university campuses and the city centre. Burley’s train station also makes it popular and it’s now mainly final-year students who focus their search around Headingley, which was once the city’s traditional student heartland.”
Josh concludes: “We are anticipating rental increases next year of 5% on average. This is being driven by demand, as well as inflation and increasing mortgage rates. Plus, the amount of purpose-built student accommodation being built in Leeds is also helping to push rents up. Although it’s competition for traditional student housing stock, the fact that rents in brand new city centre developments regularly exceed £1,000 a month per person, means students are now generally prepared to pay more.
“However, we have seen landlords selling up due to proposed energy performance certificate (EPC) requirements, which could mean rental properties must have a minimum rating of C by 2025. In many cases, our trained assessors can advise on basic improvements that will bring a property up to the required standard, so landlords should check before selling.
“There’s no doubt that student housing in Leeds remains a good investment for those who are attracted by the high yields on offer, due to cheaper purchase prices and higher rents. Even in the current climate, we’re still seeing new landlords entering the market for the first time who contact us for advice on C4 paperwork, HMO licences and ultimately for helping to secure and manage tenants.”
