Housing Crisis May Benefit Students

AFS Team·15 March 2011·3 min read
Housing Crisis May Benefit Students
Good can come out of bad and the current depressed housing situation in the UK may have long term beneficial effects for students. Over the last year average buy to let rents across the country have fallen or remained stable but rentals for student accommodation have risen by 19% (says The Independent). This is leading to an increased interest from buy to let investors who are going more and more into the student accommodation market and consequently giving more choice and better quality. Traditionally a buy to let investor prefers a new property so students will find an increase in the number of quality properties available, often fully equipped to very good standards. Student applications are up 34% from 1997 according to UCAS and because of the rise there is higher demand, a lucrative market for any investor. Overseas students are still fuelling demand and boosting rental incomes for landlords, even despite the concern over student fees. The same source tells us that there was a 13.6% rise in overseas student applications last year, many of whom were able to pay full fees. In turn this leads to student property being low risk and a high yielding hands off investment for those looking for a safe home for their cash. Especially in London student numbers are going to continue to rise in the coming years. This gives landlords very solid demand, the advantage of owning a property which they know is going to be tenanted for almost all the year and an incentive to keep their property to a high standard for discerning tenants. If the property market, as is forecast, remains depressed this effect may spread outwards from the capital particularly to high demand areas.