November 23, 2011
Increased Student Fees have Landlords Worried
2012 is set to see the annual university fee rise to a staggering £9000 (average); a figure that has landlords worried. Early reports from UCAS, the University and College Admission Service, have indicated that fewer students are applying for university courses to start in 2012, simply because they can’t afford the fees and the living costs. Understandably landlords with rental properties in University cities are worried about the consequences of fewer students, but with potential renters coming from other areas they really have nothing to worry about.
Caroline Kavanagh, Lettings Director of Townsend Estate Agents, recently pointed out that while the number of applications from British students has fallen; those from international students have actually increased. The number of students entering the workforce straight from college has also increased and a large percentage of this sector are currently sharing privately rented properties.
In short, the decrease in student applications doesn’t automatically equate to a shortage of potential renters in university areas. The demand for private rental property by students is forecast to stay as high as it is at present…a demand that currently outweighs supply. Landlords should not be put off investing in student accommodation because of the current UCAS reports, as there are always many more students looking for rental properties than there are properties available.
