Table of Contents
Why Sheffield is Ideal for Student Property Investment
In the past few years, investing in student property in Sheffield has shown to be an advantageous choice for investors, and it’s easy to see why. Sheffield, also known as the Steel City, has developed into a lively student city with an increasing student population.
Because Sheffield has two big universities, the University of Sheffield and Sheffield Hallam University, there is always a lot of demand for student housing. From our experience, Sheffield is one of the best places to invest in student housing because it offers both safety and good results, especially if you want a steady rental income.
High Demand for Student Accommodation
With around 60,000 students across both universities, Sheffield’s student population keeps driving the market for student accommodation. We’ve seen how the influx of both domestic and foreign students creates a steady need for housing, especially around the Sheffield city region and areas like Crookes and Broomhall.
The fact that Sheffield attracts students from around the world means the demand doesn’t wane as much as in other cities. In the last few years, the number of overseas students has risen by around 5% annually according to government data, making student housing investment here even more attractive.
Lower Entry Points for Investors
One of the key reasons property investors are drawn to Sheffield is the relatively low property prices compared to cities like London or Manchester. You don’t need to break the bank to get started with student property investment. The provisional average house price in Sheffield in August 2024 was £223,000.
Source : Office For National Statistics
Given the rental yields you can get, the lowest property prices for student rentals in places like Parson Cross and East Sheffield may start at about £150,000, which is really competitive. The city’s closeness to Peak District National Park also adds to its attraction since it gives grads and locals quick access to breathtaking scenery and outdoor pursuits.
Compared to London, where entry points are significantly higher, Sheffield’s affordable property market is ideal for first-time investors interested in entering the UK real estate market. The city’s attractiveness as an investment opportunity stems from its unique natural features and affordable expenses.
Competitive Rental Yields
Sheffield has an advantage in terms of rental yields. Depending on the area, investors might anticipate yields on student properties of between 6 and 8%. Yields at the top end of the spectrum are often better in places like Sharrow and Ecclesall Road.
Source : Office For National Statistics
The reason for this is simple: students are willing to pay for convenience, whether that’s being close to campus or in trendy neighbourhoods. Compared to traditional residential property, student rental properties often deliver better returns because of the high turnover of students and the short-term nature of their stays.
Reduced Void Periods Due to Year-Round Demand
Sheffield property investment has several benefits, one of which is the decreased probability of vacancy periods. Student housing, in contrast to more conventional rental properties, generally experiences a continuous demand cycle throughout the year.
We’ve noticed that most students start looking for properties well in advance of the academic year, ensuring that properties are rented out almost immediately after one tenant leaves.
Source: England Hotel Occupancy Latest Report
And with two universities drawing thousands of students year after year, landlords typically don’t struggle to keep their houses filled. In fact, according to Sheffield City Council, the overall occupancy rate for student investment properties in the city is around 85%.
Featured Properties with High Rental Returns
But before we go any further, here are some brand-new properties in Sheffield that you should definitely check out if you want to make a smart investment:
- Sheffield
Deposit
.
Yield
Property Price
.
- Sheffield
Deposit
.
Yield
Property Price
.
Universities in Sheffield
The success of any student accommodation investment often depends on the strength of the universities in the area. Fortunately, both of Sheffield’s prestigious institutions are seeing growth in their student populations.
These colleges support the city’s demand for real estate as well as its economic stability. The presence of two universities in Sheffield is highly beneficial for real estate investors, as it broadens the pool and variety of potential tenants.
University of Sheffield
A huge number of students from all over the world flock to the world-renowned University of Sheffield, which is a member of the esteemed Russell Group. With a total of about 29,000 students, including more than 7,000 international students (University of Sheffield), there is a constant demand for comfortable dorms.
Source: University of Sheffield
The university is located near key student areas like Crookes, Broomhill, and the city centre, making these prime locations for student property investment. The proximity of these areas to campus means you can expect high demand, especially if your real estate is within walking distance of the university.
Sheffield Hallam University
Another major player in the student housing sector is Sheffield Hallam University. It boasts one of the largest student populations in the nation, with over 30,000 students, which significantly contributes to the need for student housing.
The two campuses of the university are strategically located in south-east Sheffield, which attracts investors to neighbourhoods like Ecclesall Road, Sharrow, and Highfield.
Purpose-built student accommodation (PBSA) in these places is a great choice for investors wishing to meet the demands of the university since, as we have observed, Sheffield Hallam students frequently choose more current, reasonably priced housing.
Angel Gardens is located in an up-and-coming district of Liverpool. It is in close proximity to two major regeneration projects: the £150 million Project Jennifer and the £5.1 billion Liverpool Waters scheme.
Cash Needed
Rent per month
Limited Units
£185k
Sheffield’s Strong Economy and Its Impact on Property Investment
Sheffield’s economy has undergone a real transformation over the last few decades. From its industrial roots as the Steel City, it’s now one of the UK’s fastest-growing cities, with a thriving mix of industries including advanced manufacturing, healthcare, and, importantly, education.
What this economic growth means for investors is simple: more people coming to live, work, business and study in Sheffield. Real estate investment in Sheffield is a fantastic method to take advantage of the city’s momentum, as two significant institutions are largely responsible for that growth.
Economic Growth and Its Influence on Property Demand
Sheffield’s robust economy has drawn students, businesspeople, young professionals, and even foreign students. The city’s employment rate has grown by 7% over the last decade (ONS), which translates directly into need for rental properties. Areas close to the two universities—have seen a surge in rental yields as a result.
In addition, the city’s overall economy has grown significantly. In 2022, the city’s Gross Value Added (GVA) was over £13 billion, which shows that it has one of the best regional economies in the country.
Private and Public Sector Jobs Growth
Source: Sheffield data analysis By Centreforcities
What’s really appealing for Sheffield is that while residential property prices remain relatively affordable, demand from potential students and working professionals means there’s a consistent stream of tenants looking for accommodation.
In fact, the city is now one of the fifteen best places in the UK to invest in real estate, mostly because its economy is stable. If you’re interested in putting your money in Sheffield, particularly in student-heavy areas, the city’s economic growth is a promising sign.
Contribution of the Student Population to the Local Economy
It’s hard to ignore the sheer economic impact Sheffield’s student population has on the city. Between The University of Sheffield and Sheffield Hallam University, students contribute around £1.3 billion annually to the local economy. This influx of students fuels demand for everything from student accommodation to local businesses.
Source: Sheffield’s Growing Population by Sheffield City Council
Areas around the universities like Crookes and the city centre are particularly reliant on the student presence, and that’s reflected in the high rental yields investors enjoy in these areas. What’s more, the growing number of foreign students, who often look for higher-quality accommodation, has driven up the need for purpose-built student accommodation (PBSA) in recent years.
Types of Student Property in Sheffield
When it comes to student accommodation investment, there are a couple of routes investors can take. Popular in Sheffield both Houses of Multiple Occupation (HMOs) and Purpose- Built Student Accommodation (PBSA) appeal to somewhat different groups. To make a wise investment, you need to know the advantages and drawbacks of every option.
Houses of Multiple Occupation (HMOs)
HMOs are a classic choice for student real estate in Sheffield. Usually older, period conversions, these houses can accommodate several tenants under one roof and share common areas including kitchens and living rooms.
From our experience, particularly in highly sought-after student communities like Broomhill and Crookes, HMOs usually provide outstanding rental returns—often upwards of 8%. Sheffield students prefer HMOs because they’re typically cheaper than renting an apartment alone, and they get to live in a more social environment.
For Sheffield property investors, HMOs offer great flexibility, but there are legal and management challenges to consider. In many areas, HMOs require a special licence from the local council, and there are specific regulations around shared living spaces and safety standards. But if you’ve got a good management firm in place, HMOs can be an excellent way to maximise your rental income.
Initiate a powerful sequence of your property growth and reinvestment.
Initiate a powerful sequence of your property growth and reinvestment.
Unleash how successful investors build wealth, reduce financial stress, and achieve financial freedom.
Purpose-Built Student Accommodation (PBSA)
Sheffield has seen a real boom in Purpose-Built Student Accommodation (PBSA) during the past few years. Designed especially for students, these contemporary, fully equipped blocks have all the conveniences—secure access, free Wi-Fi, and often even areas like study rooms and gyms.
Source: Sheffield City Council Purpose-Built Student Accommodation Market Study
The best thing about this is since professional management companies usually manage PBSA properties, they usually require minimum maintenance for investors. For individuals looking for a more hands-off investment, PBSA is therefore a tempting choice.
Particularly prevalent around Sheffield Hallam University is PBSA. In fact, PBSA in Sheffield has a really high occupancy rate of about 95%, which makes it among the most sought-after kinds of lodging. Although rental incomes for investors range from 6 to 7%, the real attraction is the simplicity of administration. If you’re looking to enter the student property market without the hassle of managing an older property, PBSA could be the way to go.
With the city’s growing population of students, vibrant economy, and variety of real estate investment opportunities, Sheffield offers a fantastic landscape for both new and experienced investors. The strong economy and high student demand in Sheffield, make it a perfect location to create long-term, consistent income whether your investment is in an HMO or purpose-built student accommodation.
Key Areas to Invest in Student Property in Sheffield
When you’re looking to invest in student property in the UK, picking the right location is crucial. Over the years, we’ve seen that rental demand and returns are regularly high in some areas. The students in Sheffield live in a number of lively neighbourhoods, and each one has its own character and investment prospects. There are important things to think about whether you want to be close to universities or have a lot of student social events.
Crookes
If you’ve spent any time looking into student property in Sheffield, you’ll know that Crookes is a standout. It’s a hugely popular area with students from The University of Sheffield because it’s close to campus, while still feeling like a proper community. You’ll often see students out in the local shops and cafes, creating a lively atmosphere.
Average Property Price: £250,000 (Terraced House)
Average Rental Yields: 6% – 8%
If you’ve spent any time looking into student property in Sheffield, you’ll know that Crookes is a standout. It’s a hugely popular area with students from The University of Sheffield because it’s close to campus, while still feeling like a proper community. You’ll often see students out in the local shops and cafes, creating a lively atmosphere.
Broomhill
Another top spot for student rental property is Broomhill. Numerous students, mainly from The University of Sheffield, have long loved the area. What’s great about Broomhill is that it strikes a good mix. Students can easily get to the university and the city centre, but the neighbourhood feels more upscale and quieter than other areas with a lot of students.
Average Property Price: £280,000 (Terraced/Semi-Detached House)
Average Rental Yields: 5% – 7%
The prices of homes in Broomhill are pretty high, but investors can make money because there is a strong desire for rentals and the market is more upscale. A lot of the time, the students who live here are happy to pay a little more to be in such a nice and convenient place. The rental yields might be slightly lower than in Crookes, but they’re still very healthy, especially when you factor in the long-term capital appreciation Broomhill tends to offer.
Ecclesall Road
You can’t talk about Sheffield’s student market without mentioning Ecclesall Road. Since there are so many shops, bars, and restaurants in this area, it is one of the liveliest places in the city. Students from both Sheffield Hallam University and The University of Sheffield really like living there, so if you want to find a lot of tenants, Ecclesall Road is the place to go.
Average Property Price: £300,000 (Terraced/Semi-Detached House)
Average Rental Yields: 6% – 7%
Ecclesall Road is a top spot for students who want to be in the thick of the action, and that’s why it remains a strong area for investors. Yes, the property prices here are a bit higher, but the rental yields still hover around 6-7%, and demand never drops. The proximity to shops, nightlife, and both universities means you’ll always have students queuing up to rent your property.
City Centre
If you’re the kind of investor who likes the idea of being right in the heart of things, then the city centre could be for you. The centre of Sheffield has seen plenty of regeneration over the past few years, and it’s now full of modern apartments, many of which are geared towards students and working professionals. Both Sheffield Hallam University and The University of Sheffield have campuses close to the city centre, which drives demand from students who prefer convenience over a suburban feel.
Average Property Price: £180,000 (Apartments)
Average Rental Yields: 6% – 8%
Making investment here in the city region is a smart move if you’re looking for easy tenant turnover and properties in university places that are often fully booked. Rental yields are solid, typically around 6-8%, and the city centre appeals to a wide range of students, including outside students who tend to prefer newer buildings. The city’s tram network also makes it easy for students to get around, which is an extra draw.
Sharrow
Sharrow is a neighbourhood that’s grown in popularity, particularly with students from Sheffield Hallam University. It has a real cultural mix, and there’s always something going on in this surrounding area—whether it’s food markets or local events. It’s also less expensive than nearby areas like Ecclesall Road, which makes it appealing to students who want to be close to the excitement without spending a lot of money.
Average Property Price: £220,000 (Terraced House)
Average Rental Yields: 6% – 7%
For investors, Sharrow represents a more affordable entry point while still delivering good returns. You’re looking at rental yields of around 6-7%, and the lower property prices make it easier to get started. Because it’s so close to Sheffield Hallam University, Sharrow always has a steady stream of students looking for accommodation.
Walkley
Walkley is a bit of a hidden gem in the Sheffield student property market. It’s slightly further out from the city centre, but it’s still within easy reach of The University of Sheffield. Students who live here often want something quieter and more residential, making it perfect for those who prefer a bit more space and peace compared to places like Crookes.
Average Property Price: £200,000 (Terraced House)
Average Rental Yields: 6% – 8%
For property investors, Walkley offers a great opportunity because of its lower property prices. You’re still getting the strong rental yields—around 6-8%—but with a more relaxed vibe. It’s an area that’s seeing more interest from students as they look for cheaper alternatives to some of the more expensive neighbourhoods.
Future Outlook for Student Property Investment in Sheffield
For investors like yourself, the student market in Sheffield is showing no indications of slowing down. More housing will be required for students as the student bodies of Sheffield Hallam University and the University of Sheffield expand. The city’s economy is doing very well, and as more students move to Sheffield, the business opportunities in student housing stay very good.
Expected Rise in the Number of Students
There have always been a lot of students in Sheffield, and that number is only going to grow in the years to come. Both colleges want to get more students, especially from other countries. There are about 60,000 students in Sheffield right now, and that number is expected to rise by about 3-5% each year for the next five years.
Sheffield population growth
Shows total population by year.
Source: Plumplot
This means that real estate owners will always have people looking for places to rent. People will still want to live in areas like Crookes, Broomhill, and Ecclesall Road, so now is a great time to spend.
Long-Term Investment Potential Amid Demand and Economic Stability
The long-term potential of student real estate investment in Sheffield is solid, mainly because of the city’s stable economy and increasing student numbers. Sheffield is one of the most rapidly growing cities in the UK, and universities play a significant role in that.
As long as the economy stays strong, the demand for student housing will increase. This implies that Sheffield provides long-term returns to property investors, with rental yields remaining competitive and property values progressively increasing. Whether you’re focusing on PBSA or HMOs, Sheffield’s student market is set to provide strong, stable income for years to come.
How to Maximise Returns from Your Student Property Investment in Sheffield
Student property investment in Sheffield offers a lot of opportunities, but to really maximise returns, you need to make strategic decisions. Sheffield is home to two major universities—The University of Sheffield and Sheffield Hallam University—which continuously drive demand for student accommodation.
The city’s popularity with both domestic and foreign students makes it an attractive market for property investors. Here’s how to get the best results from your student real estate investment.
Pick the Right Location
Location is key when it comes to investment in property in Sheffield. Popular areas like Crookes, Broomhill, and Ecclesall Road are always in high demand because they’re close to the university campuses and offer easy access to the main centre.
Students love being able to walk to their university as well as nearby cafes, stores, and social venues. Sharrow and Highfield have cheaper property costs and are popular with students, which helps maintain rental yields competitively, typically reaching 6-8%. Choosing the correct location may reduce void times while still ensuring consistent student demand.
Offer High-Quality Accommodation
Particularly international students who typically search for accommodation offering security, modern comforts, and easy access, students today have more expectations of their living environment. Your resort will be unique among others by offering top-notch furniture, engaging common areas, and completely furnished rooms with complimentary Wi-Fi.
In recent times, purpose-built student housing (PBSA) has grown in popularity in Sheffield, particularly near the city centre. Students like this form of lodging because it provides modern, fully furnished apartments with amenities such as gyms and study areas. By investing in or improving your home to match these expectations, you can boost your rental income while maintaining high occupancy rates.
Work with a Professional Management Company
Particularly if you own more than one property, running a student rental can be somewhat taxing. Many Sheffield property investors have decided to deal with a professional management company. Particularly for Houses of Multiple Occupation (HMOs), they manage daily chores including tenant selection, rent collecting, upkeep, and ensuring your home satisfies all legal criteria.
Having a management firm take care of your investment is especially useful if you don’t live near Sheffield or have other investments to manage. It’s an effective way to keep your property in good condition while making sure tenants are satisfied. Plus, a good management firm helps you stay compliant with any regulations related to student properties.
Cater to International Students
There’s been a steady rise in the number of students coming from other countries to Sheffield, and this group often has specific accommodation needs. Foreign students are more likely to want to live in new, fully furnished apartments close to university grounds and the city centre. Investing in homes that meet this need, especially purpose-built student housing, is one way to get renters who are willing to pay more.
Also, students from other countries usually stay for the whole school year. This cuts down on empty times and makes the rental income more stable. By offering accommodation that meets their needs—such as proximity to public transport like Sheffield’s tram network, along with security features and modern amenities—you can tap into this growing market.
Regularly Review Your Rent and Expenses
To maximise your returns, it’s important to regularly review your rental yields and expenses. With Sheffield being one of the fastest-growing cities in the UK, property prices are steadily rising, which means rents are also increasing. However, it’s important to strike a balance: your property should remain competitive while ensuring you cover any additional costs, like upgrades or maintenance.
By keeping an eye on similar student rental properties in your area, you can adjust your rent accordingly. Small but meaningful improvements, like adding new appliances or making common areas better, can also help explain small rent increases. Knowing what’s going on in the market will help you get the most out of your investment property and keep your renters happy.
Conclusion
Anyone, regardless of experience, can profit from investing in Sheffield student housing. People want to reside in Sheffield because it has two large institutions and a strong economy that will last for a long time. This makes Sheffield a great place to invest in real estate for both renting income and capital growth.
The city’s diverse student demographics, affordable property prices, and high rental yields make it a top contender for property investors seeking stable, long-term returns. Whether you’re looking to invest in HMOs or purpose-built student accommodation, the future of Sheffield’s student property market looks bright, with opportunities for growth and sustained demand from both domestic and international students.
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.
Exclusive Property Launch Invitations
Customised Market Reports
Exclusive Access to Off-Market Properties
Networking Events
