Everywhere you go in Nottingham, you’ll find the buzz and vigour of student life.
It’s easy to see why – the city is jam-packed with students. There are over 79,000 enrolled across the University of Nottingham and Nottingham Trent University. For context, that’s roughly the same as Manchester (83,000), but in a city that’s only two-thirds the size.
With the population replenished every new academic year by a fresh batch of first-years, there’s a huge demand for student housing. For savvy investors, that represents an opportunity to tap into one of the most popular student cities in the country – a city that is actively encouraging investment in Purpose-Built Student Accommodation (PBSA) among other initiatives for the student experience.
In short, as long as you pick a property carefully and keep it well-maintained, it’s likely you’ll have tenants every year.
The first step is figuring out where. Location is everything, especially for students.
There are densely populated pockets spread across the city – often close to the campuses, and more often than not, within walking distance of several bars and pubs.
So, in this guide, we’ll take a look at the four best areas for student property investment in Nottingham, using industry data and local insights to give you all the information you need to get started.
Let’s dig in.
The 4 Best Areas For Student Property Investment In Nottingham
We’ve identified four prime spots that promise strong rental yields and are popular with the student crowd.
First, here’s the data:
| Postcode | Avg Price | 5 Year Growth | Avg Rent | Avg Yield | Home to… |
|---|---|---|---|---|---|
| NG9 | £296,019 | 37% | £1,358 | 5.5% | Beeston |
| NG7 | £214,931 | 30% | £1,649 | 9.2% | Lenton, Dunkirk |
| NG1 | £160,560 | 19% | £1,387 | 10.4% | City Centre |
Now, let’s take a look at some of these areas in more detail.
Lenton
Lenton is synonymous with student life.
Much like Fallowfield in Manchester or Smithdown in Liverpool, there’s a huge community of students.
The area’s reputation is a big draw for undergrads from both universities. House parties have been known to rage all through the night, although it’s the extremely convenient location between the university campus and the city centre and reliable bus connections that make it a top spot.
This is seen in the data, too. NG7, the postcode area that contains Lenton, is one of the top-performing spots in the country, not just Nottingham. The volume of students helps to generate higher-than-average yields of 9.2% across the entire postcode off an average price of just £214,931 – extremely tempting for student property investors.
Dunkirk
Adjacent to Lenton and similarly close to the University of Nottingham, Dunkirk is another student hotspot. It’s also part of NG7, so expect similar rental yield and capital growth performance.
Most ‘Uni of’ students end up picking between Lenton and Dunkirk. The latter is somewhat calmer than its neighbour but has all the same advantages. It’s also so close to the campus that students can roll out of bed and into their lecture halls. The nearby Queen’s Medical Centre makes it particularly popular with medical students, too.
Investors here benefit from both competitive rental income and appreciating property values, thanks to the ongoing demand from a steady influx of students needing convenient and accessible housing options.
Beeston
Beeston offers a different appeal with its more residential vibe and strong local community. As a result, you tend to find a greater proportion of post-graduate students in Beeston.
Despite being slightly further out than Lenton or Dunkirk, it’s on the tramline so it has excellent connections not only to the university campuses but all of Nottingham.
Part of the NG9 postcode, properties in the area have a slightly higher average asking price at £296,019, with rents at about £1,358 per month, reflecting a yield of 5.5%. Over the past five years, property prices in Beeston have risen by 37%, indicating a robust market for investors seeking long-term value growth.
The appeal of Beeston lies in its balance between a quieter, suburban atmosphere and bustling student life, making it ideal for students who prefer a less hectic environment but still value ease of access to university facilities.
City Centre including Arboretum
The city centre, especially the properties around the Arboretum area, are home to a large population of Nottingham Trent students – with the campus only a short walk away.
The entire area, covered by the NG1 postcode, is perfect for students who enjoy a dynamic urban setting and unparalleled access to the city’s amenities, entertainment, and nightlife (no need for a taxi home after a night out!).
Meanwhile, eagle-eyed investors will have notithat ced NG1 has the strongest rental yields in the city, with properties hitting an average yield of 10.4%.
PBSA vs Student HMOs in Nottingham
When looking at student property investment in Nottingham, it’s key to understand the two main types of accommodation: PBSA (Purpose-Built Student Accommodation) and HMOs (Houses in Multiple Occupations).
Here’s how they stack up against each other.
Purpose-Built Student Accommodation (PBSA)
- Amenities: PBSA often boasts extensive facilities, including gyms, communal areas, and sometimes even cinema rooms.
- Convenience: These are usually located close to university campuses.
- Rents: Tend to be higher, reflecting the premium facilities and lower level of supply.
Houses in Multiple Occupation (HMO)
- Rents: Generally more affordable due to fewer amenities and high supply.
- Flexibility: HMOs are found all over Nottingham.
- Community Feel: Many students find that living in an HMO offers a more traditional and community-based student experience.
There is keen support for more PBSA across Nottingham, recognising that students are largely split in preference (and there may even be a slight sway towards PBSA).
There’s plenty in the pipeline, too. A Nottingham City Council report, in January 2024, outlined that the city has added an average of 1,500 PBSA bed spaces each year for the past 5 years, with a further 8,000 expected by 2026 – some of the UK’s strongest growth rates outside of London.
In short, if you’re interested in student investment property, you should have plenty of choice in Nottingham over the next few years.
Summary
In our exploration of Nottingham’s property market, we’ve identified four outstanding areas that promise sound student accommodation investment opportunities.
These locations combine strong student demand with attractive rental yields, making them excellent choices for any investor’s portfolio.
They each come with unique advantages and disadvantages, too. So we encourage potential investors to consider their own investment goals and the preferences of the student market when choosing.
If you’d like some help in that regard, feel free to get in touch. We specialise in buy-to-let property, both residential and student. Our role is to help you find a suitable property for your budget and goals, and then guide you through the purchase process. We’re ethical, transparent, and free (we earn a commission from the property developers we work with).
You can reach us by filling in the form below, and we’ll call you back to organise a free consultation.
About Our Data
The data in this article is accurate as of April 2024. We’ll update this report next year, in 2025, with the latest insights and fresh data.
Dive Deeper
Want to learn more about the Nottingham property market? Then read our guide to the best buy-to-let areas in Nottingham.
