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Overview of Nottingham’s Student Apartment Market
When you look at the student apartment market in Nottingham, you can’t help but be excited about the potential this city offers.
This city has a lot of different kinds of students because it is home to two big universities: Nottingham Trent University and the University of Nottingham. The demand for quality luxury student accommodation is massive, which is music to an investor’s ears.
It’s a prime location that many savvy investors capitalise on. But avoiding modern conveniences can cause you to miss out on chances. These days, students want more than just a bed or a place to sleep.
They want a lively place to live. If you invest in properties that meet these needs, they will not only rent out faster but also give you a better return.
The Increasing Demand for Student Apartments in Nottingham
It’s really impressive how much people want student apartments in Nottingham. A lot of foreign students come to this city every year to go to university, which makes the rental market very strong.
Demand for accommodation is still solid given over 62,000 full-time students enrol at Nottingham Trent University and the University of Nottingham.
Local and international students alike look for apartments close to their colleges and city attractions, therefore guaranteeing constant demand for homes near campuses and the city centre.
Economic Impact and Local Benefits
The Nottingham City Council’s “Student Accommodation Update 2024” report shows that these Nottingham colleges sustain 25,000 jobs and yearly earnings of £3.8 billion, therefore greatly boosting the local economy.
This economic activity highlights the necessity of regional student accommodation even more, therefore supporting the market’s appeal to possible investors.
Attractive Rental Yields Compared to Other Property Types
The rental yields of student accommodation sometimes surpass those of traditional buy-to-let properties.
In Nottingham, these returns usually fall between 7% and 8%, although occasionally they might be somewhat higher. This surpasses returns seen in more conventional rental properties, where renters usually have fewer expectations regarding rent.
When it comes to student houses, nowadays students have higher expectations. They are searching for homes with quick internet, contemporary kitchens, and shared spaces more and more.
Properties that satisfy these requirements often rent faster and charge more. In a competitive market, improving basic facilities will help a student home appeal much more, hence increasing occupancy rates and rental income.
Supply and Occupancy Rates
Thanks to local council rules encouraging such projects, Nottingham’s purpose-built accommodation for student (PBSA) area has expanded greatly. With just 0.8%, the PBSA vacancy rate for the academic year 2022–23 was remarkably low.
This number shows the ongoing need for student accommodation even with more supply. Given demand far higher than availability, student housing presents a low-risk investment with short running times.
Rising Rental Costs
Rents for student housing in Nottingham have risen considerably in recent years. The average yearly rent for student properties in 2023/24 was £8,427, up 15.5% from 2021/22.
Inflation, rising energy costs, and other financial pressures have all contributed to this increase, but it also shows that investors have the potential to generate more rental revenue in the coming years.
Featured Property Investment Opportunities
But, before we discuss further, here are a few properties we highly recommend checking out if you’re serious about making a smart property investment in Nottingham:
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Prime Areas for Student Apartment Investments in Nottingham
If you want to invest in student apartments in Nottingham, there are a few areas that you should think about to invest in affordable prices. Each area has its own personality and can fit the needs of students with a range of hobbies and ways of life. Now let’s look at some of the top spots:
City Centre
Without a doubt, Nottingham’s centre of activity is the City Centre. Students appreciate how convenient it is to live here as both Nottingham Trent University and the Nottingham University are close by. Imagine having cafes, stores and nightlife all within walking distance – this is a desirable location for many people!
But, because of this advantageous position, competition can be fierce. Modern conveniences and warm community areas tend to draw more interest in a property. It all comes down to establishing a warm environment that students choose to call home.
West Bridgford
West Bridgford is a great place to live for students as it is both: quiet and close to the city. People love its cute little independent shops and beautiful parks, making it a great choice for college students who want to live close to the city but less busy.
Many people like the area’s friendly vibe and sense of community, which makes it a good pick for investment. Plus, it’s easy to get to the colleges by bus, so it’s convenient without all the noise.
Investing in West Bridgford can be a good idea because homes here tend to rent to a wide range of people, providing a steady stream of rental income.
Lenton
A lot of students like this place because it’s close to the University of Nottingham. There are lots of shops, pubs, and social events in the area, so it’s always lively.
Investors should keep in mind, though, that this success means there will be more competition. Properties that stand out—perhaps with great communal spaces or modern kitchens—are more likely to attract tenants quickly.
Lenton’s vibrant culture and community spirit make it a strong contender for student apartment investments.
Beeston
Beeston is quickly becoming a go-to spot for students seeking a more affordable living option. It is a practical choice because it has great travel options, such as a tram that goes straight to the university.
People there are easygoing, and there are lots of green places and community-building amenities in the area. Many popular students choose to live in Beeston because the rent is cheaper there than in the city’s centre. This makes it a good place to invest. As popularity of Beeston grows, so does the potential for strong returns in this neighbourhood.
In short, the city offers a variety of neighbourhoods, each with its own appeal for students. Understanding what each area brings to the table can guide investors in making informed decisions, whether they’re drawn to the lively City Centre or the peaceful charm of West Bridgford. Each location presents exciting opportunities to invest in the student apartments market!
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Why You Should Invest in Student Apartments in Nottingham
Strong Student Population and Growth
One of the first things you should think about when investing in perfect student accommodations is how much demand there is. Tens of thousands of new students come to Nottingham Trent University and the University of Nottingham every year, so the number of students is always growing.
The flow is constant, whether the kids are from the area or are coming from other countries. In fact, Nottingham is becoming a big draw for foreign medical students wanting to go to college in the UK. They all need places to live.
We’ve seen firsthand how this steady growth provides a solid market for investors. If you own property in areas close to the city centre or near the universities, you can be pretty confident that there will always be a healthy demand for student bedroom flats and apartments.
This is particularly true if your property is well-located and offers modern amenities that students want. It is the kind of market that rarely slows down.
Resilience During Economic Downturns
The market for student housing can be very strong even when the economy is bad. This is something we tell investors all the time. We can see that the need for student housing stays the same during the decline.
The number of students stays the same even when the economy slows down. This is because more people go to school to learn new things when the economy is bad.
It was very clear to us in Nottingham during the pandemic. Other types of properties were having a hard time, but student apartments kept doing well. For a while, lessons were held online, but students still needed places to live, especially in Wollaton Park or the Nottingham city centre.
For those who had invested in student apartments, it was a reassuring sign that their investments were still working, despite the uncertainty in other markets.
Increasing Demand for Quality Accommodation
It’s important to highlight how considerably the student housing market has changed through the years. It’s no longer enough to just have a basic room with the bare necessities.
Students today have certain expectations, especially those who come from other countries or pay more for their school and university. Luxury student apartments are on the rise, and we have seen this trend reflected in Nottingham.
One mistake we have seen some investors make is thinking they can get away with offering sub-par housing. That approach does not work anymore. Since students pay more for better quality, they now put a lot of value on modern kitchens, open-plan living rooms, and common areas.
These kinds of properties rent out much faster and for more money, especially if they are near colleges or the city centre. We always advise investors to focus on quality because that is what gets results in today’s competitive student market.
Supportive Local Policies for Housing Development
The local government is another reason we think Nottingham is a good place to invest in student housing. They have taken a lot of initiative to build homes, especially in places near Nottingham Trent University and the University of Nottingham.
The city is getting bigger, and the council knows it needs to make sure there are enough apartments for the growing number of students.
For investors, this means that the planning process is more likely to go smoothly than in some other places. Nottingham wants to see new buildings and renovations in certain places. This makes it easier for you to get planning permission and start your project.
Plus, with the city investing in transport links and student-friendly amenities, properties in well-located areas are becoming even more attractive. It is all about timing your investment right, and Nottingham’s supportive policies make it a great place to start or grow your portfolio.
Universities in Nottingham
Nottingham Trent University
Nottingham Trent University (NTU) is one of those institutions that has really made a name for itself, especially in the last decade. If you are thinking about investing in a bedroom student property, this is a key player in the market.
NTU has a growing student body, with over 30,000 students—and the demand for student accommodation is constantly rising because of it. It’s one of those universities that draws in students from all over, and not just from the UK.
The number of international students heading to NTU is growing year on year, and that really keeps the demand for quality housing steady.
Now, whenever we talk to investors, we always highlight how important location is, especially when it comes to NTU. Since the main campus is in the middle of the city, apartments close are very valuable.
They want to be close to everything, like classes, shops, bars, and more. Properties near Talbot Street and Clarendon Street have done very well in terms of both rental returns and occupancy rates.
When investing in this area, it’s important to keep in mind that modern students want more than just a bed and four walls. They desire modern amenities and places to learn and unwind.
University of Nottingham
The University of Nottingham is much larger than NTU, with over 45,000 students. This university has a bit more of a traditional campus feel, set just outside the city centre in areas like Wollaton and Beeston.
We always tell investors to think about the type of student population they are catering to here. You have a big mix—undergraduates, postgraduates, and a significant number of international students.
It’s especially popular among those looking to study things like medicine or law, and these students often stay for longer tenancies, making it a bit more stable than your typical private student accommodation market.
What’s interesting about the University of Nottingham is that students tend to prefer quieter areas with more green space, compared to the city-centre buzz that NTU students go for.
If you are looking at Lenton or West Bridgford, for example, you are going to find students who are willing to pay a premium for something that’s close to campus but also offers a more peaceful environment.
We have seen a rise in demand for student studios and one-bedroom flats in these areas, particularly from postgrads and international students who are looking for something a bit more private.
Key Amenities and Features That Appeal to Students
Investing in student housing makes it clear that what students want changes. In the past, you were good as long as you had a moderately big room. But these days, students expect more. The good news is, if you can provide what they are after, you can charge a bit more, and your property will never sit empty.
First off, Wi-Fi—it’s non-negotiable. It sounds obvious, but you would be surprised how many investors overlook this. Fast, reliable internet is probably the number one thing students ask about when they are looking for a place to live.
So, making sure your property has top-notch Wi-Fi is an absolute must. We have seen students turn down properties that do not offer good internet, even if everything else is perfect. It’s that important.
Having parking spaces is another great way to make a home stand out. Since students are naturally social, they are looking for an environment where they can study or socialise with others. Some great selling factors include open-concept kitchens and large living areas.
If you can add these to your rental home, the process of finding tenants will go more smoothly. Students love spending time outside, whether it’s in a small courtyard or on a rooftop. It makes a big difference in how happy they are.
The next part is the useful parts. There needs to be a laundry room on-site or nearby. Many students might not show up if they have to do their cleaning on campus. No one wants to go across town.
Another important issue is safety, especially for international students. We’ve found that homes with secure entry systems, CCTV, and well-lit doorways not only get renters faster but also make them feel safer, which is something parents care about too.
The last thing to think about is public transport bus links. Many people want to live near tram lines or bus stops in Nottingham because the city is very well-linked. When it comes to making it easy for students to get to and from school and go out at night, places like Derby Road and the area around Victoria Centre are great.
If your property is in one of these well-connected areas, you are almost guaranteed to have a steady stream of interest from students.
Conclusion
Student apartments in Nottingham are a hot market with plenty of room for growth. Investors are capitalising on a market that offers long-term stability and good rental rates, thanks to the increasing demand for student housing caused by two famous universities—Nottingham Trent University and the University of Nottingham.
Key features like modern amenities, parking spaces, and fantastic transport links make properties even more appealing to the student population. Moreover, Nottingham’s supportive local policies and ongoing development projects create a favourable environment for both new and experienced investors.
If you focus on the specific needs of students—whether that’s high-speed Wi-Fi, quality living spaces, or proximity to their universities—you can ensure your investment remains competitive in this thriving market.
In a city with such robust and consistent demand for quality accommodation, Nottingham offers a unique blend of opportunity, security, and growth for property investors looking to enter or expand their portfolios.
Area Guide
Danny Bell
I’m Danny, one of the consultants here at Flambard. Having grown up in and around various sports teams and a family real estate business, my sociable, completive nature has excelled me in such a challenging yet rewarding job.