Student rental yields rise ahead of new term

The findings from Goodlord highlight that rental yields in England began to increase in July.

The areas recording their highest average rents in the year-to-date survey are in Greater London, the North West, the North East, the South West and South East, as well as the West Midlands.

The lettings platform says that for some landlords, average rent rises in some regions have nearly doubled in recent weeks.

Student landlords

The survey found that student landlords in the North East enjoyed the best average rent price rise with an average rent of £1,114 for student accommodation being let in July.

That's up from the average rent of £636 in March last year - a rise of 75%.

That's also higher than the North East student rents recorded in July last year when the average was £967.

Rents in the North West have reached a new annual high of £1,552, while in the South East, July was a bumper month for student landlords as rents reached £1,581.

And since July and August are the busiest months traditionally for students to sign up for rental properties, this rise in average rents is not unexpected.

Welcome relief for most student landlords

The firm says that the rent rises will be a welcome relief for most student landlords after a year when many students preferred to remain at home or had deferred their studies.

The chief executive of Goodlord, Tom Mundy, said: "In July, the Goodlord platform processed more tenancies than ever, and was one of the busiest months we've seen.

"Voids are dipping and rents are rising for both the wider market and student properties.

"Agents tell us that available rent stock is being snapped up and some are struggling to meet demand."

He added that the platform is predicting that rents will continue rising through August before they cool off.

Student rent prices

Mr Mundy said: "Student rent prices are higher overall in most regions than they were this time last year, which reflects a market that is operating with more certainty."

The figures also reveal that for the wider lettings market, July was also a busy month with the average rent for a home in England rising by 10% over the month.

The new annual average rent figure of £1,060, is higher than June's average of £960.

That's the highest average rent being seen since September 2019.

Void periods in England for July were 14 days - the lowest average since August 2019.

The student accommodation sector

The managing director of Accommodation for Students, Simon Thompson, welcomed the student rent figures and said: "Rising rents are to be welcomed by the student accommodation sector that has had a torrid time during the Covid pandemic.

"Student landlords strive to offer quality homes for students to rent and competition will be tough for the better standard of home."

However, student demand and rents could still rise substantially with news that top universities are struggling to find enough student accommodation for the thousands of extra students they will need to cater for next term.

In addition to the students who have deferred, record numbers have been achieving high grades in their A-levels to meet their university offers.

Being offered student accommodation in other cities

Now, some students are being offered student accommodation in other cities or the option of sharing rooms as universities look to purchase spare private student accommodation.

Among the universities offering accommodation in other towns and cities is Bristol University who says that demand has been so strong with first choice candidates,that they are looking to house up to 300 students in Bath and are offering to pay travel fees.

Also, any student who is unhappy with a room provided for their first-year studies can defer and then choose to be 'priority access' for student accommodation next year.

Students who have turned down accommodation

Alternatively, Bristol University says that it will help its students who have turned down accommodation to find private student homes.

The director of undergraduate admissions at Bath University, Mike Nicholson, told one newspaper: "Parents are keen to get fast answers on accommodation but it will be challenging at some universities.

"We may have to use private student accommodation for those students holding insurance places."

He told the newspaper that their preferred option is to lease a student accommodation block from a private provider and then sublet it to its students.