Students across Newcastle and surrounding areas have seen an increase in rent prices and a lack of affordable options for student accommodation following the announcement of the demolishment and redevelopment of Castle Leazes. 

Newcastle-based estate agents, Seekers (formerly Walton Robinson), have reported that rental costs for student landlords have experienced significant growth, reaching record peaks of over 21% for the 2022/23 academic year. 

Seekers anticipate rental prices to continue rising throughout the next letting season, having let 76% more properties than during the same period last year. 

Average rental increases are close to 5%, which has resulted in a knock-on effect on sales prices, especially for multi-occupancy homes. 

One property saw a rental increase of 21% located on Mowbray Street in Heaton, and another of 20% in Heaton Grove.  

In comparison to the prior year, the landlord’s income for 2022/23 has climbed more than ever before, according to the student rentals and property management firm. 

General Manager of Seekers (formerly Walton Robinson), Amy Gibson, said in the report: 

“A key factor to a landlord achieving a higher rental income is ensuring that properties are consistently kept to a high standard.” 

“At Walton Robinson we work very closely with landlords to ensure that this is happening and can offer a number of services assisting with the process from start to finish.” 

“The increased demand of supply shows that now is the time to make these improvements in order to drive the rents upwards.” 

See more from the report issued by Seekers, here. 

A spokesperson from My Property Box, said: 

“I think you’re better off, and it’s more affordable, to live in [student] housing. I think [student] accommodation is overpriced, personally.” 

My Property Box handles “a few hundred” student properties in Newcastle and surrounding areas. They say the most sought-after housing areas for students are in Jesmond and the City Centre. 

Tegan Carrier, Branch Manager at My Property Box Ltd, said: 

“There is always such a high demand and not enough properties to accommodate every student. Students want certain groups; 3 and 4 beds are the most popular.” 

Out of the few hundred student properties My Property Box manage, the average cost of rent per week is £135.  

Last year, the same property cost £115 per week. 

The cheapest option available from My Property Box Ltd is priced at £95 per week.  

In September, when they re-market all the properties, rent prices will increase again due to the increasing demand for the housing market, particularly for students. 

Following the closure of Castle Leazes over the summer, with huge redevelopment plans in a £250m partnership scheme with Unite Students, many wonder how the universities will keep accommodation affordable amidst the cost-of-living crisis. 

Nick Collins, Executive Director of Finance at Newcastle University, said: 

“Roughly two-thirds of first-year undergraduate accommodation is provided directly by Newcastle University, one of our key objectives is to make this promise to our students.” 

While “trying to maintain a level of discount to the wider city” Newcastle University will ensure affordability when marketing accommodation options. 

Collins discussed how student accommodation options correlate to the age of the buildings. Since Castle Leazes will be the newest build, it is assumed to be the highest pricing rent for student accommodation, followed by Park View. 

Rent prices for Park View currently start at £178.80 per week, and Castle Leazes is set to be higher in rent when it reopens in 2027/28. 

You can read more about the demolition and redevelopment of Castle Leazes, here. 

Over 5,000 students across 500 institutions have rallied to sign the ‘Manifesto for our Future’ to support students in the upcoming general election. 

The manifesto aims to tackle issues affecting student livelihood, including the housing demand and the cost-of-living crisis.  

The manifesto contains five key demands for the newly elected government to act on: 

“1. In the first 100 days: Break the student crisis cycle: Life every student in the UK out of poverty and give us all hope for the future.” 

“2. Invest in a thriving future, invest in education: Education that is free at the point of use and funded sustainbly and publicly. 

“3. Homes for our futures: Quality, green and affordable housing for all.” 

“4. A welcoming and inclusive future: The UK should be an amazing place for international students to work and study.” 

“5. A healthy future: High-quality healthcare available for free for every single person in the UK.” 

As students continue navigating the increase in rent prices amidst the cost-of-living crisis, it is crucial to continue to monitor these trends closely to ensure the safety and well-being of students across North-East. 

For more information on the “Manifesto of our Future”, and to sign the petition, click here. 

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