Drop in Sheffield student numbers as businesses hit and rents fall
Developers say Sheffield has been hit by falling student numbers - forcing rents down in the city and hitting businesses.
Businesses are feeling the pinch, following a fall in student numbers in Sheffield with the city described as being harder hit than other cities.
The decrease is said to have led to a fall in student rents, and has hit businesses which have catered for the city’s overseas student population.
Documents which have been submitted to officials describe numbers of students coming to study in the city has having fallen since 2020.
Both universities, as well as the former Education Secretary Lord Blunkett, are blaming the decrease on Government policies making it more difficult for overseas students to come to the city.
And it has led to claims that demand for flats have plunged, with student rents falling as a result.
Documents recently published to Sheffield Council describing proposed changes to the huge Code development, which would see over 1,000 flats built near Wellington Street in the city centre, stated:
> Sheffield’s universities had failed to attract any increase in numbers of students in recent years compared to other Russell Group Universities, with 1,500 less students choosing to study in Sheffield since 2020.
> There has been a decline in the number of international and domestic students attending Sheffield Hallam (36 per cent drop in international students) and the University of Sheffield (seven per cent less students in 2025).
International property firm Cushman and Wakefield said in their UK Student Accommodation Report 2025 that Sheffield had seen its demand pool having likely fallen by 17.3 per cent between 2022/23 and 2024/25. They stated: “Such a ratio is unprecedented in a major market, and has resulted in the largest decrease in rents in any location in the UK this year.”
Jerry Cheung, the prominent Sheffield businessman behind New Era student housing, and a well known figure within the city's Chinese community, said a fall in the number of Chinese students had affected businesses.
He said: "A lot of the businesses which cater for Chinese students are seeing a fall in demand, and it affects all aspects, from restaurants and supermarkets to haircuts.
"International students come here and use the restaurants, taxis, shops and bars. The Chinese hospitality sector is an area I know well, and they are badly affected. I am told that the restaurants are very quiet compared to a few years ago. It is a significant effect.
"Student accommodation is in oversupply now. We've got 649 in New Era development, and we're doing OK this year, but that is with no price increase, and we have big rooms. It is supply and demand."
Sheffield Business Improvement District - known as Sheffield BID - which has worked to promote Sheffield city centre as a vibrant hub for commerce, culture and community since 2015, said students are important the the city centre economy.
Students contribute significantly to Sheffield’s economy, and they form an important part of the customer base for many city centre businesses
It told The Star in a statement: “Students contribute significantly to Sheffield’s economy, and they form an important part of the customer base for many city centre businesses. However, the vast majority of high street operators serve multiple markets - from local residents and workers to visitors and event‑goers - which means they’re already resilient to the natural trading fluctuations that occur during university breaks and holiday periods.
“When we look at changes in student numbers over the longer term, the issue is more about understanding shifts in the city’s overall economic mix rather than any immediate impact on day‑to‑day trading. Sheffield’s strength comes from having a diverse customer base, supported by a strong cultural and events programme that brings people into the city throughout the year. That helps maintain healthy footfall and ensures businesses aren’t reliant on any single market.”
Former education secretary Lord Blunkett, who was the long serving MP for Sheffield Brightside, blamed falling numbers on the previous Conservative Government, which he described as clamping down on visas and used language which discouraged large numbers of students, particularly from China, from wishing to come to the UK.
He said: “Whilst at the University of Sheffield domestic student recruitment held up, many of them requiring accommodation, the intake to Sheffield Hallam has been substantially from Sheffield and the subregion, with a growing tendency of students to live at home.
“The combination of falling numbers and a change in the balance between home and residential has clearly made a difference.
“The variation of the University of Sheffield with some other Russell Group universities is in part a decision taken by the leadership team and the University Council to retrench on poorly recruiting areas of study, and therefore to deliver from a smaller base.”
However, both Universities have told The Star that they have seen rises in student numbers this year.
The University of Sheffield said in a statement: “Like many universities across the UK, international recruitment has been affected by sector-wide changes in recent years.
“However we have seen strong demand from both UK and international applicants, including an increase in applications via UCAS, reflecting our strong performance in national and international rankings.In terms of international student numbers, fluctuations have been due to a range of factors, such as changes to visa policies, demographic shifts and wider economic conditions.
They added the University remained focused on providing a world class education, outstanding student experience and excellent graduate outcomes for students, as well as strengthening international partnerships to ensure that Sheffield remained a highly attractive destination for students from across the UK and around the world.
Sheffield Hallam University said it saw an increase in international students for 2025/26 compared to the previous year.
It added: “For context, Government policy decisions have affected international student applications sector-wide in recent years. Every year, Sheffield welcomes thousands of international students and is one of the UK cities that benefits most, both culturally and economically. “