A Guide to Where to Invest in Student Accommodation in the South
Investing in student accommodation is one way property investors can aim to maximise their letting yields. In this report we’ve compared a range of factors to help identify what could be some of the best cities to invest in student accommodation in the south of England.
The best cities for student accommodation investment are mostly places with attractive property prices, strong rental yields, good rental demand and large student populations.
Bath
The historic city of Bath is not only a tourist hotspot but a major student city too.
The University of Bath has its main campus at Claverton Down east of Bath. Bath Spa University has campuses at Newton Park, Syon Hill and Locksbrook.
Popular areas for Bath student houses are the city centre, Combe Down, Odd Down, Oldfield Park and Lower Weston.
- Two large universities in the Bath area.
- The student population in Bath is 22,000, approximately.
- The average house price in Bath is currently £393,883 (Bath and North East Somerset district).
- Average gross yields in Bath up to 2.9% *.
- Up to 28.48% price growth over the past 5 years.
Here’s more information on the buy-to-let property investment market in Bath.
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Bournemouth
Bournemouth University is a relatively new university and has a reputation for its media courses. The university has invested heavily in new facilities and has two main campuses. The small Arts University Bournemouth or AUB is also here. Bournemouth is also a popular location for English language schools and hosts thousands of foreign language students annually.
Bournemouth town centre and Winton are popular student areas.
- Two universities in the Bournemouth area.
- The student population in Bournemouth is 16,800, approximately.
- The average house price in Bournemouth is currently £299,505 (Bournemouth, Christchurch and Poole district).
- Average gross yields in Bournemouth are up to 4.5% *.
- Up to 18.45% price growth over the past 5 years.
Here’s more information on the buy-to-let property investment market in Bournemouth.
Brighton
Although best known as a seaside city Brighton is also a large student centre. The University of Brighton has three campuses in Brighton plus one in Eastbourne. The University of Sussex is also in Brighton.
Areas popular for Brighton student accommodation include Lewes Road, Hanover, Poets Corner, Moulsecoomb, Bevendean, Coldean and Kemptown.
- Two universities in the Brighton area.
- The Brighton student population is 41,000, approximately.
- The average house price in Brighton is currently £400,636 (Brighton and Hove district).
- Average gross yields in Brighton up to 4.4%. *
- Up to 12.65% price growth over the past 5 years.
Here’s more information on the buy-to-let property investment market in Brighton.
Bristol
Bristol is the largest student city in the south after London. There are two universities in Bristol – the University of Bristol and the University of the West of England or UWE plus a number of higher education institutions.
The University of Bristol is planning a new £300m campus in the Temple Quarter and this could expand student numbers by 30%.
Popular locations for Bristol student accommodation are Clifton, Redland, Cotham, St. Andrew’s, Filton, Fishponds and Horfield.
- Two large universities in the Bristol area.
- The Bristol student population is 50,000, approximately.
- The average house price in Bristol is currently £316,177.
- Average gross yields in Bristol up to 4.3%. *
- Up to 13.51% price growth over the past 5 years
Here’s more information on the buy-to-let property investment market in Bristol.
Cambridge
Cambridge is world-famous as a university town. As well as the University of Cambridge, which is made up of a number of university colleges, Anglia Ruskin University or ARU also has a campus here.
Cambridge has one of the highest student populations in relation to the local population of anywhere in the south, meaning that student property is very sought after in Cambridge. Central locations are particularly popular.
- There are two universities in Cambridge. The University of Cambridge has 31 university colleges.
- The Cambridge student population is 42,000, approximately.
- The average house price in Cambridge is currently £474,824.
- Average gross yields in Cambridge up to 3.6%. *
- Up to 6.34% price growth over the past 5 years.
Here’s more information on the buy-to-let property investment market in Cambridge.
Canterbury
Canterbury’s student population has doubled over the last decade. Canterbury has one of the highest student-to-local resident population ratios in the country.
The main universities in Canterbury are the University of Kent and Canterbury Christ Church University. Smaller universities in the city are the University for the Creative Arts and Girne American University Canterbury.
Canterbury Christ Church University and the University of Kent have recently established the new Kent and Medway Medical School.
Areas for student property in Canterbury include Hales Place, St. Dunstan’s and Wincheap. Whitstable Road, Old Dover Road and New Dover Road are also popular.
- There are two large universities and two small universities in the Canterbury area.
- The Canterbury student population is 40,000, approximately.
- The average house price in Canterbury is currently £323,285.
- Average gross yields in Canterbury up to 5.3%. *
- Up to 20.46% price growth over the past 5 years.
Here’s more information on the buy-to-let property investment market in Canterbury.
Colchester
Colchester is home to the University of Essex which was created in the 1960s. The University of Essex has a purpose-built campus on the edge of town at Wivenhoe Park.
Colchester is generally a good value area of the south for property prices.
- One university in the Colchester area.
- The Colchester student population is 15,000, approximately.
- The average house price in Colchester is currently £277,935.
- Average gross yields in Colchester up to 3.2%. *
- Up to 17.13% price growth over the past 5 years.
Here’s more information on the buy-to-let property investment market in Colchester.
Exeter
Although Exeter is one of the UK’s smaller cities the University of Exeter frequently ranks in the top 20 of UK universities.
Exeter has also grown fast as a commercial centre in recent years so property to buy and property to rent is in high demand.
Areas that are popular for student property include the city centre, Pennsylvania, Stoke Hill, St. Davids, St. Thomas, Mount Pleasant, St. James, Heavitree, Newtown and St. Leonards.
- One university in the Exeter area.
- The Exeter student population is 22,500, approximately.
- The average house price in Exeter is currently £263,101.
- Average gross yields in Exeter up to 3.5%. *
- Up to 22.66% price growth over the past 5 years.
Here’s more information on the buy-to-let property investment market in Exeter.
Guildford
The University of Surrey is located in Guildford. Around a third of students at the University of Surrey are from outside the UK.
Guildford is a higher-priced location due to its popularity as a London commuter location and as a result of the many large employers based in and around the town.
The city centre, Onslow Village, Stoughton and Bellfields are amongst popular areas for Guildford student houses.
- One university in the Guildford area.
- The Guildford student population is 16,000, approximately.
- The average house price in Guildford is currently £490,285.
- Average gross yields in Guildford are up to 4.1%. *
- Up to 9.83% price growth over the past 5 years.
Here’s more information on the buy-to-let property investment market in Guildford.
Hatfield
Hatfield in Hertfordshire isn’t well known as a university town but the University of Hertfordshire regards itself as one of the top 200 universities in the world. The university was created in the 1990s and is based on four campuses across Hatfield.
Hatfield is close to London but generally has better value student accommodation than in London itself. The best student locations are those within walking distance of the College Lane campus and the De Havilland campus.
- One university in the Hatfield area.
- The Hatfield student population is 25,000, approximately.
- The average house price in Hatfield is currently £415,435 (Welwyn Hatfield district).
- Average gross yields in Hatfield up to 4.9%. *
- Up to 11.64% price growth over the past 5 years.
London
London is the biggest student city in Britain and one of the biggest in the world. There are an estimated 400,000 students in London.
London is particularly popular with overseas students. There are around 110,000 students from abroad in London. London universities include many world-famous universities such as University College London or UCL, Imperial College London and the London School of Economics and Political Science or LSE.
London student rents are the highest in the country. The average London student room rent is £640 per month, according to Times Higher Education. High property prices in London mean good yields can be hard to find, however.
There is student accommodation all over London. Students generally prefer accommodation that is within 30 minutes or so of their university using public transport.
Here are some guides to the different areas of London for buy-to-rent property: North, East, South and West.
- Around 40 universities in the London area.
- The London student population is 400,000, approximately.
- The average house price in London is currently around £500,000.
Norwich
Norwich has the University of East Anglia or UEA, which has a purpose-built campus to the southwest of the city centre. There is also Norwich University of the Arts.
Popular areas of Norwich for student accommodation include Bowthorpe, North and West Earlham, Eaton, the city centre and the Golden Triangle.
PrimeLocation includes Norwich amongst its top 20 student, buy-to-let hotspots.
- There are two universities in the Norwich area.
- The Norwich student population is 16,000, approximately.
- The average house price in Norwich is currently £210,793.
- Average gross yields in Norwich up to 4.6%. *
- Up to 14.59% price growth over the past 5 years.
Here’s more information on the buy-to-let property investment market in Norwich.
Oxford
Oxford, alongside Cambridge, is one of the UK’s most well-known university towns. Oxford is famous for the University of Oxford. Oxford is also home to Oxford Brookes University.
The University of Oxford is the biggest single employer in Oxfordshire and employs almost 14,000 people.
Locations to look at for student accommodation include Jericho, Park Town, Cowley Road, Cowley and Headington (Oxford Brookes University).
- There are two universities in the Oxford area. The University of Oxford has 39 university colleges.
- The Oxford student population is 40,000, approximately.
- The average house price in Oxford is currently £435,732.
- Average gross yields in Oxford up to 3.8%. *
- Up to 8.52% price growth over the past 5 years.
Here’s more information on the buy-to-let property investment market in Oxford.
Plymouth
Plymouth is Britain’s Ocean City, with an economy based around the sea. It’s also a sizable university city. The University of Plymouth has around 19,000 students and 2,500 staff. Plymouth Marjon University (the University of St. Mark and St. John) has around 2,400 students.
Plymouth is a good value property location. It is one of the cheapest cities for average property prices in the southwest.
Popular areas for privately rented accommodation include Plymouth city centre, Barbican, Greenbank, North Hill, Mutley and The Hoe.
- One large university and one small university in the Plymouth area.
- The Plymouth student population is 21,400, approximately.
- The average house price in Plymouth is currently £183,986.
- Average gross yields in Plymouth up to 3.8%. *
- Up to 15.25% price growth over the past 5 years.
Here’s more information on the buy-to-let property investment market in Plymouth.
Portsmouth
Portsmouth is a city of the sea and is the home of the Royal Navy. Portsmouth is also the most densely populated city in the UK after London.
The University of Portsmouth is a relatively new university having been established in 1992. It is investing £400 million over 10 years to develop and expand its facilities.
The university’s buildings are just to the west of Portsmouth city centre. Popular areas for Plymouth student accommodation are Southsea and Fratton close to the city centre. The suburbs of Eastney, Milton, North End and Hilsea are popular with students while Drayton, Farlington, Cosham, Fareham and Gosport also have some student accommodation too.
- One university in the Plymouth area.
- The Plymouth student population is 25,500 approximately.
- The average house price in Portsmouth is currently £223,313.
- Average gross yields in Portsmouth up to 4.1%. *
- Up to 16.77% price growth over the past 5 years.
Here’s more information on the buy-to-let property investment market in Plymouth.
Reading
The University of Reading has around 19,000 students from around 150 countries. The university has campuses at Whiteknights, London Road and Greenlands near Henley-on-Thames.
Popular student areas in Reading include streets around the campuses such as Wokingham Road, Earley and also the town centre.
- One university in the Reading area.
- The Reading student population is 19,000 approximately.
- The average house price in Reading is currently £305,754.
- Average gross yields in Reading up to 4%. *
- Up to 9.23% price growth over the past 5 years.
Here’s more information on the buy-to-let property investment market in Reading.
Southampton
Southampton has a large student population relative to its size. Southampton is home to the University of Southampton, which claims to be one of the top 15 universities in the UK, and Southampton Solent University.
The most popular student property areas of Southampton are Portswood, Swaythling, Highfield, Bassett and Shirley.
Southampton ranks as one of the cheaper places to invest in property in the south of the UK with prices well under the national average.
- There are two large universities in the Southampton area.
- The Southampton student population is 43,500, approximately.
- The average house price in Southampton is currently £212,527.
- Average gross yields in Southampton up to 5.5%. *
- Up to 12.31% price growth over the past 5 years.
Here’s more information on the buy-to-let property investment market in Southampton.
Other Locations
The south of England has several other university towns and cities. With smaller student populations these offer more limited opportunities for student accommodation investors, however:
- The University of Bedfordshire has campuses in Aylesbury, Bedford, Luton and Milton Keynes.
- Chichester is home to the University of Chichester.
- As well as Cambridge, Anglia Ruskin University has a campus in Chelmsford with around
6,000 students. - Chelmsford is a good value property area compared to much of the southeast. Chelmsford is becoming more popular with students thanks to reasonable living costs and being only 30 minutes from London by train.
- As well as Exeter, the University of Exeter has a campus at Truro and at Penryn nearby. Marjon University also has a campus at Penryn.
- Falmouth University is based at Penryn near Falmouth and has a campus in Truro.
- The University of Gloucestershire is located in Cheltenham and Gloucester.
- Ipswich is home to the University of Suffolk.
- Medway Campus near Rochester and Chatham in Kent has departments from the University of Greenwich, the University of Kent and Canterbury Christ Church University.
- As well as Oxford, Oxford Brookes University has a campus in Swindon.
- In Peterborough, Anglia Ruskin University or ARU is developing a new campus where there could be 12,500 students by 2030.
- The University of Winchester is in Winchester, Hampshire.
- Worcester is home to the University of Worcester.
The 10 Largest Student Cities in the South
- London
- Bristol
- Southampton
- Cambridge
- Brighton
- Canterbury
- Oxford
- Portsmouth
- Hatfield
- Exeter
(By student population size, largest first.)
About Our Data
Population estimates are based on information provided by Localstats. Current average prices are taken from HM Land Registry data. Average gross yield and past 5-year growth figures are taken from property xyz.
* Yield figures are based on the wider rental market. Student property yields are typically much higher than the wider market.