Landlords confident on student demand

Sarah Davidson

August 21, 2012

A recent survey by specialist buy-to-let lender Paragon Mortgages suggests despite reports of a modest decline in student numbers for the 2012/2013 academic year, those landlords who do let property to student tenants are feeling positive.

Research by BDRC Continental of NLA landlords also reported on student landlords’ growing confidence in the market, with 70% saying that they rate the prospects for future investment in student property as good.

Landlords were also asked to comment on whether the changes in tuition fees would affect demand for student rental property. Of those letting to students 57% said that in their view there had been no change in demand for student lets, said Paragon.

John Heron, managing director of Paragon Mortgages, said: “The student rental market is one of the largest specialist components of the private rented sector. Letting student property is appealing to landlords as they usually benefit from higher than average rental yields as rooms tend to be let on an individual basis. There are generally lower levels of arrears too as student tenancy agreements benefit from parental guarantees.

“Landlords who let a proportion of their portfolio to students are feeling positive about the market and their experience of letting to students continues to be good. This is an area of the private rented sector which will continue to thrive as long as the demand for university places continues.”

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