Student Property Investment Leeds

Leeds, UK - Skyline
Daniel Williams
Daniel Williams
Senior Property Writer
4 Min Read

The West Yorkshire city of Leeds has fast become one of the best places to invest in student property. Home to over 60,000 students and boasting affordable prices with high rental yields, a student property investment in Leeds is a top choice in 2022. 

Here’s why: 

High Rental Yields for Leeds Student Investment Property 

Thanks to the perfect blend of affordability and high rental income, the return potential of the Leeds student property market is one of the best in the UK. 

According to official Land Registry data, the average house price in Leeds is valued at £217,725. 

While this is higher than Manchester, Liverpool, and Birmingham’s, it’s still an impressive £52,983 below the UK average. 

More importantly, this average is for the entire Leeds housing market, with Leeds student investment property available for as low as £50k. 

Factoring in annual rental income estimated to be around £7,683, property investors making a Leeds student accommodation investment could net returns between 8 – 15%. 

It gets better: 

Leeds student rental income has been known to rapidly increase over the years, with the average annual rental cost for student accommodation increasing from just over £4,000 to almost £6,000 between 2011 to 2018. 

It’s understandable, then, that research from Paragon ranked Leeds in the top 10 best places for investing in student accommodation 

Leeds Student Population 

A big factor behind the strong rental yields seen in the Leeds market is the high demand from students. 

With a student population of over 60,000, demand for Leeds student property investment is some of the highest in the UK. 

This doesn’t just come from domestic students, with Leeds popular amongst overseas students too. 

In fact, the University of Leeds alone attracts over 9,000 international students to its wide range of courses. 

This is especially important for Leeds student property investors, as a report from Savills revealed that international students are 2.2 times more likely to rent purpose-built student accommodation.  

With a high level of demand, especially from overseas students, high-end and luxury new developments are starting to pop up across the city, leaving people with plenty of opportunities to invest. 

However, despite the increasing amount of new developments, supply is unable to keep up with demand, with the current students to available beds ratio sitting at 4:1. 

This is actually good news for investors, as those buying a Leeds student investment property will be almost guaranteed to secure a tenant, provided the facilities were up to par.  

Four Top Universities in Leeds

Leeds currently offers four top-class universities, which is one of the major reasons behind the large student numbers in the city. 

These universities include: 

  • The University of Leeds 
  • Leeds Beckett University (formerly known as Leeds Metropolitan University) 
  • Leeds Arts University 
  • Leeds Trinity University  

But while the number of universities is certainly an attraction to Leeds, it’s the quality of these institutions that sets the city apart from many others in Europe. 

The University of Leeds is ranked 20th out of 130 universities in the Complete University Guide – just one behind Birmingham. 

Leeds students enjoy the city so much, in fact, that around 39% choose to stay and work in the city, the fifth-highest graduate retention rate in the UK. 

This is a good sign for investors and opens the door to alternative property investments in the city to diversify a portfolio.  

The University of Leeds 

While Leeds has four excellent universities, likely the best amongst them is the University of Leeds. 

Established in 1904, the University of Leeds is one of the largest universities in the UK and is part of the prestigious Russell Group, a collection of 24 world-class research universities in the UK.  

The university is industry-leading in many sectors, with its Criminology, Civil Engineering, and Agriculture courses all ranking second in the UK. 

For this reason, it’s unsurprising that Leeds also ranks highly on the global stage, ranked in the top 100 universities in the 2021 QS World University Rankings. 

This comes after several years of success, with the University of Leeds ranked as the 2017 University of the Year by The Times and The Sunday Times’ Good University Guide. 

Leeds, United Kingdom Leeds, United Kingdom

Leeds Regeneration Potential 

As already mentioned, many students studying at Leeds are choosing to stay and work in the city. 

A major reason behind this is the fantastic employment on offer, which will continue to grow thanks to billions being spent on urban regeneration. 

Leeds city region is currently the UK’s second-biggest economy outside London, with a GVA of over £69 billion. 

This has stemmed from an incredible business sector consisting of the likes of Asda and Jet2. 

These numbers will likely continue thanks to the upcoming South Bank Leeds project, which is set to double the size of Leeds city centre and create 35,000 new jobs. 

Fantastic Infrastructure 

Thanks to Leeds being ideally located near prime locations across the UK, the city is considered a top choice for students who want to live near their families. 

Due to its central location and with excellent motorway links, those living in Leeds can get to London and Birmingham in just a few hours.  

The likes of Liverpool and Manchester can also be found nearby, with both cities less than 90 minutes away. 

Factoring in busy train stations like Leeds City station, a thriving A road network, and an international airport, the city of Leeds is the ultimate transport hotspot for homesick students. 

How to Invest in Student Property Leeds? 

For those choosing a student property investment in Leeds, you have two main options: 

  1. Purpose-Built Student Accommodation 
  2. Student HMOs. 

Both of these strategies have their own set of pros and cons (read our 2022 student property investment guide to learn more), but likely the best choice is purpose-built student accommodation. 

Not only are PBSA apartments more affordable than HMOs, but they’ve quickly become the preferred choice for students thanks to the modern lifestyle on offer. 

With attractive features like superfast Wi-Fi, onsite security, and communal areas for tenants to socialize, this new type of luxury student living is overtaking the more traditional shared housing style of student property. 

This type of purpose-built accommodation is on the rise across the UK, with £5.77 billion spent on PBSA in 2020 – a record-breaking high. 

What Is the Best Area to Invest in Student Property Leeds? 

So, where exactly should you invest in student property in Leeds? 

There are currently several popular student suburbs you could consider for a student property investment in Leeds. 

This includes: 

  1. Hyde Park 
  2. Headingley 
  3. Woodhouse 
  4. Leeds City Centre 
  5. Burley 

These areas have become incredibly popular for students, thanks to the proximity to university campuses, pubs, bars, restaurants, and shopping spots. 

You can find plenty of student developments in the areas, with sizeable rental costs generating upwards of 10%. 

Buy Student Property Leeds With RWinvest

We hope you’ve enjoyed our guide to Leeds student investment property. 

If you’re ready to start your property journey and invest in student property in Leeds, then RWinvest is the company for you. 

We are a property investment company with 18 years of experience in residential and student property. 

Today, you can find student property in the UK’s best student areas like Liverpool, Manchester, Birmingham, and Leeds. 

Just chat with our sales team today to see what opportunities we have available for your budget. 

Alternatively, if you want to learn more about student property investment, we have a tonne of guides for you: 

Daniel Williams
Daniel Williams
Senior Property Writer

Daniel Williams is a senior property writer at RWinvest. Regularly publishing in-depth articles on topics such as the best investment areas in the UK and guides on how to invest, Daniel has a keen eye for statistics and analysing property market changes.