Analysis by Knight Frank estate agents has revealed that the value of beds rented to students by private sector landlords is around £22bn. According to a PropertyInvestorToday.co.uk article from October 2017, it is estimated that by the end of the year, a further 25,000 students will rent accommodation from private landlords and this will mean that the value of beds rented by private landlords will equal that of universities. In Newcastle-upon-Tyne, more students rent in the private sector than from the universities. Although shared houses or HMOs (houses of multiple occupancy) are the most popular choice for students, there has been an increase in the amount of purpose-built student accommodation. Many of the new student blocks offer more facilities and a higher room standard than HMOs, which is reflected in the higher rents that can be charged for luxury newly built student accommodation. One result of constructing more purpose-built student accommodation is that it frees up private houses for purchase or rent by young professionals and families. Students choose universities by their education standards, but some students are also guided by the quality and availability of accommodation in university towns. HMOs are regulated by local councils who have tightened their control to improve the standard of those aimed at students. Landlords who want to convert large houses to student accommodation, or develop new accommodation, can be helped by bridging loans that finance the building work. Commercial buy-to-let mortgages are also available to purchase property for student tenants.
May 10, 2022
