Property investors with an interest in buy to let insurance have been given an early warning that tenants may not be in such a plentiful supply this time next year, especially if the landlord owns property in a University seat of learning.
News from the Universities and Colleges Admissions Service (UCAS) that applications from students for the 2012/ 2013 academic year are massively down could start ringing alarm bells for those who predominantly rent out to students. Although there is still around 10 weeks left of the application period for the majority of Universities the figures will be disappointing not only to landlords but to the Universities and the Government. There is no doubting the fact that tuition fees of up to £9,000 are a main contributor to the almost 12% drop.
Applications that finished in October have in fact held up and landlords who let their properties to dentists, doctors, vets or indeed the upper echelon who go to Oxford have no need to worry as these courses are already full, however, Matt Hutchinson from online letting agency spareroom.com said “Tuition fees are going up, and that may well affect people’s decision whether or not to apply to university, but it doesn’t stop there. Rents are also increasing, along with food and energy costs, so the final debt the average student graduates with may well be the biggest factor for some.”
There is no doubt that landlord’s in cities such as Durham, Coventry and Sheffield rely heavily on the student population for their living and the reduction in applications along with the rise in unemployment may well put some businesses at risk.