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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: