RLA News

Student rents rise by nearly 20 percent over five years
According to figures released by an online rental site focusing on the undergraduate buy-to-let sector, student rents have increased nationally by an average of 19 percent over the past five years. Accommodation For Students (AFS) believes that this is yet another sign of the resilience of the student buy-to-let sector, especially as rental rates in the mainstream market have fallen by 6 percent over the past year. The situation appears to be even more worrisome in Central London, where rents have declined by 18 percent in some boroughs. This means that rents in many areas are now at levels not seen since the year 2000. Student rents, by comparison, have increased by 1.5 percent since April 2008, despite the significant economic downturn.

Landlords looking to enter the student buy-to-let sector might consider investing in London, even though some neighbourhoods in the country’s capital are facing especially difficult odds due to an oversupply of properties. Somewhat ironically, however, the undergraduate sector still struggles with an undersupply of affordable residential rental options. As students prepare for the 2009/2010 academic year, well over 100,000 undergraduates will be looking to rent in the London area alone. According to AFS’s statistics, landlords can often expect 10 percent in yields in areas close to major university campuses. The situation is nearly as positive in other college towns as well, where yields of 7.9 percent have been recorded.

Those who decide to focus on offering student accommodation are generally well advised to ask for an undergraduate’s parents to guarantee the timely payment of monthly rents.

Thank you to Landlord Expert for the initial report.

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Student rents rise by nearly 20 percent over five years

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