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Student Accommodation Prices In Newcastle Climb 5% In 1 Year

Posted by Ross Jones-Morris in , ,

  • Year-on-year price rises: Rental prices for students living in private housing in Newcastle have risen 5.2% since February 2015.
  • Low inflation: The news comes as latest figures show UK inflation over the last year of just 0.3%.
  • A divided city: Expensive properties are getting more expensive whilst many cheaper properties have generally decreased in price over the period.
  • 4 bed prices rocket: The average price for a room in a 4 bed property is up 5.8%. 3 beds on the other hand are only up 2.5%.

The new research carried out by student accommodation portal[1] shows from February 2015 to February 2016 the average price of renting private student housing[2] in Newcastle climbed from £69.25pppw (per person per week) to £72.86pppw. That's a year-on-year increase of 5.2%.

Low inflation

With the latest ONS figures putting UK inflation at just 0.3% throughout 2015[3], the price rises in student accommodation costs over the same period far outstrip general price rises across the economy.

A divided city

Prices aren't up everywhere. While the more expensive areas like the City Centre, Spital Tongues and Jesmond have rocketed in price, Heaton has remained relatively stable as have Gosforth and Arthur's Hill which have dipped only 1.4% and 1.6% respectively. Fenham though has seen a dramatic drop in prices from an average of £58.13 to £55.56, a decrease of 4.4% over the year.
Newcastle Prices
Newcastle Accommodation

4 bed prices rocket

Whilst prices are up across the board as far as property size goes, 4 beds have inflated much faster this year than, for example, 3 beds with the former increasing in price by 5.8% and the latter only 2.5%. 1 and 2 beds have also kept pace with increases around 4.8%, while properties with 6+ beds have slightly beaten the average at 5.0%. In financial terms, a 4 bed house now costs over £800 per annum per household more than it did this time last year.
Newcastle Student
Newcastle Property

Tom Walker, Co-Founder of comments:

With the UK government lifting the cap on student numbers, it is inevitable that many cities will experience increasing student accommodation costs as the demand for housing rises. Naturally, this will be unpopular with students, but what is telling is the increasing premium that landlords are predicting students will be willing to pay for convenience and security. Areas already very popular with students - and therefore typically more expensive - have seen the biggest proportional increases in price. On the other hand, properties in areas that are less appealing for students - and therefore cheaper - have actually experienced price decreases to entice students back."


Notes to Editors:

[1] Based on StuRents data and analysis of 3811 private student properties in Newcastle (excluding purpose-built accommodation).

[2] Excluding private purpose-built student accommodation.

[3] Source:

Image courtesy of Flickr, Creative Commons