Growth in student rent declines


The annual growth rate in student rent has slowed down, making many landlords and potential property investors consider whether the student market will continue to be as lucrative as it is. As the number of students enrolling at university drops due to the rise in tuition fees, the student housing market stands at an unknown with no-one really knowing how it will end up. What is for certain is that the numbers are showing it is in decline, something for landlords to keep in mind.

Why has the student rent declined?

The most obvious reason for student rent declining is that the number of students being admitted to universities each year has dropped. As a consequence of this, many landlords who have purchased properties with the student market in mind have had trouble finding the number of tenants they would have liked. However, there is some hope for landlords as recent research has shown that the cost of halls of residence renting has risen by 5.5% in the last year.

Statistics about student renting

A number of important statistics regarding student housing and it’s relevant areas have come out this year, highlighting many trends and patterns that landlord should be aware of.

– Average cost of a room in a student flat-share has risen by 3% from £332 to £345 PCM.
– However, average cost of non-student flat-shares is up 7.6%, suggesting the student market is not growing as it should be.
– University applications fell from 456,581 last year to 425,858 this year – less students = less renters.
– Halls of residence costs have risen more than student flat-shares at 5.5%.

What do these numbers mean for landlords?

All the numbers suggest that the student housing market may not be the way forward after all. However, it may not be so simple to make this assumption based on only a year’s trend. Given that halls of residence fees are continually rising at a higher rate, many students will perhaps be looking to find a cheaper place to stay. Also given the fact that tuition fees are already burning a hole in their future pockets with all the debt they are in, it is natural to assume that there will still be a healthy number of students looking for a place to rent. On the plus-side however, moving out of the student housing market could significantly reduce your landlord insurance quote, given their reputation for being less than friendly with houses during their university days.




Try our sister site Rightsure Insurance for Landlord Insurance without the aggregator

Leave a Reply