A hike in student tuition fees of up to £9,000 a year could have an adverse impact on property markets in some university towns, with many students expected to struggle to maintain existing rental levels.
Student homes across some parts of the country have in the past been among the highest yielding properties, thanks to strong demand, fuelled by year-on-year increases in student numbers and rental occupancy levels.
But research suggests that a growing number of students will opt to study closer to home in the future to reduce costs, while many other would-be students could simply be priced out of going to university altogether, thus reducing demand for student rental accommodation
A recent survey by home insurer lv.com showed that that over half of students will study locally and live at home with their parents by 2020.
Graham Kinnear, Managing Director of Landlord Assist, is concerned that the hike in tuition fees will impact negatively on the student rental market.
He said: “Many of the properties in university towns cater for the student market and landlords require a reasonable yield by way of rent to allow for the maintenance and repair that is invariably needed. Many landlords will have to try to reinvent themselves as a normal landlord, but this could take some costly changes. Also, with fewer students, those left will be able to insist on better standards.”
