This year will see over 409,000 students enter the next stage of their lives… university. This is a 3% rise on the previous year, with the number of 18 year old’s attempting degree courses rising by 5%. Therefore as expected the demand for student housing has also risen, meaning that (according to the Mistoria Group) there has never been a better time to invest in quality student property for landlords.
However, the same chirpy view is not shared by the students themselves as in many cities there is a lack of affordable, quality accommodation. Additionally, according to student housing charity Unipol, between 2010-2013 rent prices have raised by 25% and this number is only expected to rise with the figures expected to increase by a further 7% by November. The rise in rent is perhaps more distressing than ever with the creation of housing co-operatives failing to implement the change that was promised. On the other hand if their plans for cheap rent, no letting fees and no landlord do eventually prevail, then maybe there is a small light at the end of the tunnel for the students.
That’s said there seems to be a gap in the market arising. Landlord Investors are now able to purchase a fully refurbished and furnished four-bed HMO property for less than £150,000 in the North West. This means that many landlords will now not only be able to provide a quality build and decent furniture but will also be able to meet more students needs such as; “quality white goods, super-fast broadband, security, large plasma’s etc.” This theory is congruent with the sharp rise in demand from investors for HMO’s, which have been described by Mish Liyanage (Managing Director of The Mistoria Group) as a brilliant long term investment option, with this type of property more than likely to be in constant demand throughout the year.
