Landlords who may have been considering using some of their portfolio for student property may receive further encouragement after it was revealed that prospects for this part of the market are "very good" at the moment.
This is according to Charlie Cunningham, chief executive officer of FreshStart Living, who said that although there have been concerns that the number of youngsters attending university could fall due to higher fees, there are still more people applying for places in further education than there are slots available.
He noted that there is still a shortage of suitable accommodation available for students at the moment, meaning landlords could potentially be engaging with a lucrative part of the market.
This sentiment was echoed by Nick Marr, director of the Little House Company, who said that the sector is a "big area" for buy-to-let contract owners at present as it is considered a more secure area for investment.
Mr Marr noted that because there will always be students, a need for high quality homes for individuals to reside in while they are away during term time will remain.
He also claimed that rental demand in London has continued to increase in recent years, as the current economic climate has resulted in many people opting to rent due to being unable to afford a mortgage at present.
Mr Cunningham also noted that ten years ago it was fair to say that student houses were "more rundown and not as good", while this kind of tenant is now more selective about where they live and will take care of their residence.
He added: "I think if you are providing student accommodation it now needs to be done to a reasonably high standard.
Written by the owner of a successful student letting agency in Nottingham, Lawpack's expert guide How to Make Money From Student Property discusses how the new generation of students have higher expectations and want modern facilities, from a dishwasher to wireless internet access.
Even en suite accommodation – once a luxury for the professional – now brings in a 25 per cent rental premium in the student market. Our guide outlines how you can meet these new demands of the student market and manage your tenants effectively.
Published on: September 17, 2012