The boom in demand from student housing has landlords desperately trying to keep up. After a year or so of too many void properties it seems that landlords now cannot fill the demand, and in the student sector this is even more obvious.
In the current academic year, 2.4 million students enrolled in universities; that represents a 34% increase over 10 years.
This unprecedented figure has resulted in fewer voids and has seen an increase in rent. The estimated figure is a return on investment of 7%-10%
There are clearly benefits, then, of renting to a student market. Compared to other buy to let properties, the returns are much higher. It is said that the demand in these areas is only set to rise over the coming years which is another enticing element.
The added bonus is that the way student housing works, the property is tenanted for most of the year and landlords knows seven months in advance if the property is pre-let for the following year.
This kind of thing guarantees income and allows planning for the future which is often lacking in the regular buy to let market. It has to be said that student rentals have a lot going for them and are certainly something to consider, especially if you are interested in property in the big student cities of Manchester, London and Sheffield.
