25 September 2017
25 September 2017,

Sheffield’s rental market is thriving at the moment, with landlords generating excellent ROI from their investment properties. One tenant demographic is proving to be particularly lucrative at present – students.

Sheffield’s Student Population

Sheffield has two main universities; which bring thousands of students to the city. The University of Sheffield, which has been in operation for over 100 years, is highly regarded, and has a student population of nearly 28,000; 31% of which are from overseas.

Sheffield Hallam University is even larger, with an impressive 31,484 students – making in the seventh biggest university in the country. Combined, that’s close to 60,000 students, all looking for accommodation in the city. It’s a captive audience, a fact that many savvy landlords have already cottoned on to.

Where to Buy?

Obviously, students are looking for properties that are situated close to their university campus. However, they’ll also want their new home to be:

  • Close to amenities – i.e. local shops, pubs and bars.
  • Within walking distance of the city centre (or with a bus stop close by).
  • Close to transport links – students like to be able to get around easily, and may want to get home to see their family.

What Sort of Rental Yield?

Sheffield offers good rental yields regardless of the area, but some postcodes do offer higher yields than others. The S2 postcode is currently performing very well, with yields of 9.74% on average, though in other parts of the city, you can still expect to make something between 5-7%, if you look in the right areas.

Property prices remain affordable, with an average house costing around £130,000. A word of warning though – prices have risen by over 5% since last year, and look set to continue climbing. This is great news if you’re looking for buy-to-let property for sale now, as it means your investment is likely to make a good profit from capital growth; but you’ll need to get in quick, or risk missing out.

It’s worthwhile considering investing in an HMO (house of multiple occupancy), as this is a great way of maximising rental yield even further. If there are no suitable HMOs on the market, it is possible to convert a house into an HMO with relative ease, though you’re likely to need a licence to do so.

UK Investment Properties that Appeal to Students

When viewing buy-to-let properties for sale, always keep your target market in mind. Students like to see:

  • Basic furniture – e.g. beds, sofas, dining tables (if there’s room).
  • Appliances – some students are happy to use local laundrettes, but most would prefer their own washing machine!
  • Internet access
  • Suitable kitchen / bathroom facilities

You’re also required by law to install fire alarms and smoke detectors. Though it’s not essential, students also like to see properties with televisions, Sky TV, dishwashers and desks to work at.

The Buy2Let Shop Limited

Are you looking for buy-to-let properties for sale in Sheffield? If so, we can help. The Buy2Let Shop’s team of professional property investment agents are here to help you find the right property, at a price that works with your budget.

To find out more about our services, simply visit The Buy2Let Shop website today.

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