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Among the wise decisions investors can make is buying student housing in York. This city has a lot going for it: great architecture, an energetic environment, and first-rate colleges.
Whether you’re just starting your property investment journey or adding to an existing portfolio, York offers exceptional investment opportunities.
The rental demand is driven by a large student population, particularly from the University of York and York St John University, making it a city where demand far outpaces supply.
Why Invest in Student Property in York 2025?
Thriving Student Population
There are a lot of students in York because it has two major universities: the University of York, which is part of the elite Russell Group, and York St. John University. Every year, more than 25,000 students come to these universities together.
With so many people coming to the city, there is always a need for student housing. I’ve seen personally how quickly homes close to campuses or the city centre can be sold, and there are often waiting lists.
New student developments and other housing choices designed for students are always full, which shows that this market will continue to be popular.
High Rental Yields
One of the standout benefits of student property investment in York is the high rental yields. Properties located in prime locations like the York city centre or close to Lawrence Street—a popular student area—command top-tier rents. For example, a well-located student housing unit can deliver yields as high as 7% or more annually.
Compared to other major cities, York’s steady demand and strong demand from students make it a safer bet for long-term returns. I always advise looking for areas with easy access to both universities and public transport to maximise your rental income.
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Stable and Growing Property Market
The real estate market in York is very strong. The city continues to draw people from all walks of life, including students, young workers, working families, and even people looking for short-term rentals.
Over the past year, York’s property prices have shown consistent growth, making it ideal for both capital appreciation and steady rental returns. When one of our clients purchased a student property near the South Bank, they saw its value increase by nearly 15% within five years—proof of York’s market resilience.
Reputation as a Top University City
Let’s not forget that York is known as a great place for students. Because they are both in the prestigious Russell Group, the University of York and York St John University regularly rank highly for academic excellence.
This reputation doesn’t just bring in students; it also brings in buy-to-let investors like me, who know how valuable it is to invest in a place with good schools. It is easy to see why students and their parents choose York over other places. It has excellent transport links to big towns like Leeds and Manchester.
York House Prices
Numbers just speak for themselves. York’s average house price in September 2024 reached £327,000, up consistently from £316,000 the year before. York is a fantastic location for property investors as well since it has been expanding consistently, indicating its strength.
Notably, York’s prices are a lot higher than the average price in Yorkshire and Humber, which is £215,000. This shows that the city is a top destination.
When working with investors, we always emphasise the importance of location within the city. For example, apartments and flats near popular sites like York Minster or in the city centre of York usually rent and sell for more.
For those investing for retirement or creating a diversified portfolio, these locations provide long-term capital gains as well as rental income.
York’s Top Areas for Student Property Investment
We have helped several investors in identifying the most profitable York areas; the secret is to know what influences tenant demand. While certain neighbourhoods appeal to young working professionals or holiday lets, others are clearly suitable for student accommodation. Here’s our breakdown of key areas:
- Badger Hill: This area is always high on our list for those investing in student accommodation. It’s a stone’s throw from the University of York and offers properties at an average price of £265,000. If you buy an apartment to rent out, you can expect rental returns of 5% to 5.5%. Because it's close to school, students like it, which keeps demand high.
- York City Centre: Investors looking for varied tenants—students, young professionals, even visitors—will find the heart of York ideal. Properties here average £328,000 but yield competitive rental returns of around 5.2%. While prices are on the higher side, we often remind clients that the prime location and rental demand can more than justify the investment.
- Clifton and Bootham: Located just north of the city, these neighbourhoods attract a mix of tenants. York Hospital is close by, hence demand exists among both personnel and students. Among our clients, properties here are a favourite since they strike a mix between cost and great rental returns.
Types of Student Properties to Invest In
When advising on student property investment in York, we always tailor our recommendations to fit the investor’s goals. From student accommodations to studio flats, each type has its strengths.