Posts with tag: student landlords

What Does the Housing White Paper Mean for the Student Rental Market?

Published On: February 9, 2017 at 9:14 am

Tags: Housing White Paper,student accommodation,student landlords,student property

Since the Government released the Housing White Paper on Tuesday, many industry experts have rushed to respond to its content. But what does the controversial document mean for the student rental market?

What Does the Housing White Paper Mean for the Student Rental Market?

On Tuesday, the Government unveiled new plans that it hopes will stimulate the housing market, encouraging more property development and making renting a more affordable option.

In the White Paper, titled Fixing Our Broken Housing Market, the Government set out its plans to boost the supply of new homes in the UK and make renting cheaper for the country’s tenants.

One measure, to introduce three-year tenancies, has been met with open arms from some in the industry, while other industry bodies believe that the Government has not shown enough support for individual landlords, who make up the bulk of the private rental sector.

Indeed, the document has been met with mixed feelings from experts in the property industry, with some believing that renters will actually be worse off following the announcement.

StudentTenant.com, which deals with the student rental market, acknowledges that the Government has taken a radical approach towards fixing the housing market.

Some of the key promises from the Housing White Paper are to support and speed up the process of developing properties, providing access to households who are currently priced out of the housing market with the Affordable Homes Programme, and making renting a more viable long-term option for private tenants.

Danielle Cullen, the Managing Director of StudentTenant.com, agrees: “We do need to protect those who are renting more, as there has long been a crisis of a lack of supply of affordable rental stock. Governments have always focused on ownership, with schemes like Help to Buy, but have seemingly always left the rental market out in the cold.

“It’s encouraging to see the Government is finally putting in place structured policies to benefit the rental market, offering people a chance to save money whilst renting. Over recent years, it’s become a trend for those who rent properties to spend around half their income on renting a property alone – and that’s without bills. Demand has significantly outgrown supply in many places in the UK, which benefitted everyone except renters, so hopefully we will finally see changes to make it a fairer market for everyone.”

But will the changes make the student rental market fairer?

Cullen explains: “This does, however, leave an area of uncertainty in how this could impact the student rental market and investment into student letting properties. We could see an increase in buy-to-let properties in the UK, but landlords could be more inclined to privately rent to families and professional couples rather than students. We’re not sure what this means for the future of student rental properties. The Government could be fixing the rental market in general, but at the expense of student housing, where we know there is already a distinct shortage in a number of areas.”

Do you invest in the student rental market? Make sure to keep up to date with any future announcements concerning the sector at LandlordNews.co.uk.

Plans approved for £20m student development in Sheffield

Published On: January 30, 2017 at 2:51 pm

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,landlords,Sheffield,student accommodation,student landlords

Sheffield has been buoyed with the news that planning consent has been awarded for a £20m student accommodation scheme in the city centre.

The City’s council gave the go-ahead for London-based developer Southern Grove to build a new 246-bed development last week. Situated adjacent to the University of Sheffield’s Engineering Faculty, Steel City will include modern accommodation and networking facilities, with a rooftop bar.

Exciting

Chief Executive Andrew Southern noted: ‘Securing planning permission for this scheme will enable us to create an exciting development that will break away from the traditional concept of student halls of residence. We are working in close collaboration with Axis Architecture, the masterminds behind this striking building and with Steel City we’ve put together a high-quality redevelopment that stiches a modern twist back into the traditional 19^th century fabric of that area.’[1]

‘As well as enlivening and regenerating an underused site, Steel City will benefit Sheffield in a number of other ways, including job creation, increased economic activity, and the freeing up of traditional family housing stock for local people,’ he continued.[1]

Work on the project is due to begin in the Spring, with the building scheduled for completion in time for the 2019 academic year.

Top of the class

Just last year, Sheffield, home to the University of Sheffield and Sheffield Hallam University, was named the best city for graduates. This was based on:

average graduate salary
average rental cost
average house price
monthly utilities
disposable income
the cost of a pint (just £2.70 on average!)

Research conducted by property website The House Shop found that Sheffield had the cheapest rental and living fees. A two-bedroom house cost £667 per month to rent on average. The average purchase price was found to be £119,806.

Nick Marr, co-founder of The House Shop, observed: ‘Sheffield has been the big winner here, with the perfect combination of low rents, affordable house prices, good graduate starting salaries, cheap pints and plenty of shops, pubs, restaurants, clubs and bars to keep new graduates entertained.’[1]

Plans approved for £20m student development in Sheffield

Buy-to-let

The growing popularity of the city has led to demand for property increasing, not just for students but for those relocating from areas such as Leeds and Manchester. Sheffield is also a very attractive region for buy-to-let investors.

In 2016, Sheffield was named as the third city for buy-to-let property investment opportunities after Leeds and Manchester. The average rental yield in the city is currently 5.3% per year, according to Urban.co.uk.

Adam Male, co-founder of Urban, said: ‘Universities in the North are incredibly popular, and for parents with children studying in the area, this region presents itself as a prime place to invest. With massive transport investments planned for these areas as well as more businesses moving North, a buy-to-let in these areas is not only likely to offer short-term financial gains, but a solid long-term investment too.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/1/plans-approved-for-20m-sheffield-development

Landlords, Prepare for the Rush of Students Looking for Homes

Published On: December 30, 2016 at 11:45 am

Author: Em Morley

Categories: Landlord News

Tags: student landlords,student property,students,tenants

Online student lettings platform StudentTenant.com has addressed the alarming problem faced by landlords and tenants every January – the frantic rush of students looking for homes for the following academic year.

Landlords, Prepare for the Rush of Students Looking for Homes

As the majority of housing lists are released after Christmas, landlords and student tenants are forced to rush through the lettings process for the start of the autumn term.

By limiting the flow of housing and releasing it all at the same time, both landlords and students face an incredibly competitive market, warns StudentTenant. In addition, the process is not ideal for current tenants who constantly have students looking for homes coming through their properties.

And the competition at present is at its worst – StudentTenant recently revealed that some students have been forced to camp outside their universities due to a chronic shortage of accommodation. This ultimately feeds a vicious cycle, as first-year students are stuck without much choice for housing, due to the majority being accounted for months before by older students.

The firm believes that the solution to this pattern is to have ongoing properties available to students looking for homes, to minimise the pressure on finding accommodation. However, it is a common practice to begin searching after Christmas, with students under the impression that the best properties are the first to go.

StudentTenant warns that this whole process is disruptive to the main reason that students go to university – to study.

Landlords, it may be a good idea to wait until after the rush to put your student property on the market. As demand for student housing is consistently high, you are extremely unlikely to suffer a void period and will provide housing to those fearful that they’d missed out on a good property with a responsible landlord.

Danielle Cullen, the Managing Director of StudentTenant, comments: “StudentTenant always has a steady flow of housing options, and we ensure that students are aware of the legal implications involved with signing a letting agreement with friends. Regardless of the rationale behind this tradition, students always seem to return to university from the Christmas holidays to start frantically looking for and booking next year’s accommodation.

“We encourage students to be sensible – they should be confident in their group of friends and find a place that is comfortable. However, the best places do go first, and it has become a trend to see the second and third years, who have already developed strong bonds, showing more organisation as they look for housing.”

Liverpool experiencing surge in student property demand

Published On: December 13, 2016 at 10:23 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,Liverpool,student landlords,student property

Liverpool’s student population is continuing to surge, with numbers increasing from 50,000 in 2015 to 60,000 this year.

As such, demand for high-quality student property in the city is also on the rise. Boasting one of the largest universities in the UK, 60% of Liverpool’s students require accommodation.

Soaring student demand

New research from The Mistoria Group indicates that there has been an increase of 37% in demand for shared student properties in the city and surrounding regions during the last 18 months.

Good quality, HMO properties are in serious demand, as are purpose-built developments throughout the region.

Data from the report shows that Liverpool offers some of the greatest rental yields outside of London, around 5.15%. In the capital, returns are fairly low-4.86% in outer London and 4.71% in the centre.

Despite London being a popular buy-to-let hotspot, The Mistoria Group’s research reveals that the North West has been the best area for yields during the last five years.

Scouse success

Mr Mish Liyanage, Managing Director of The Mistoria Group, noted: ‘Liverpool is becoming a city for property investors with more building applications being filed every month. We have seen a steep rise in buy-to-let investors looking for refurbished property within 3 miles of the University – up 28% year on year.’[1]

‘Liverpool is a booming University City and it gives investors the opportunity to acquire high yielding property with excellent occupancy rates. Research shows that Liverpool is one of the UK’s top five largest rental markets outside of London. Many post graduate students are staying on in the city to work and this is driving demand for affordable, but high quality rental accommodation,’ he continued.[1]

Liverpool experiencing surge in student property demand

Redevelopment

Liyanage noted: ‘The city is undergoing a significant redevelopment, with more than £1bn of projects, including a 34-storey triple tower residential development. There are a total of 10 developments, which are set to transform the city centre.’[1]

‘As we mainly specialize in student lets Rent prices of our properties start around £85 per week per room including bills but on ensuits they can be high as £110 per week. For example, in L6, L7, L8 and L15 post codes are very popular with the students and Investors can acquire a high quality 3 bed HMO which will house for students, from £120K onwards. The return on investment is very attractive too, with 13% (8% cash rental and 5% capital growth),’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/liverpool-sees-surge-in-demand-for-student-property.html

Salford in top 5 student buy-to-let locations

Published On: December 12, 2016 at 2:55 pm

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,landlords,student landlords,student tenants

New research has revealed that Salford is now in the top five university towns in England-ahead of Manchester, Leeds and London.

Data from the report from The Mistoria Group indicates that Salford is delivering an average rent of £750 per month, an annual yield of 6.8% and a typical house price of £131,863.

Top buy-to-let locations

Salford sits in 4^th position in the latest results, behind Aston & Birmingham City, Teeside and Sunderland, which records annual yields of 10.6%.

According to The Mistoria Group, student landlords can enjoy returns of up to 7-10%, should they be savvy and purchase the correct property in the correct area.

Managing Director of The Mistoria Group, Mish Liyanage, noted: ‘Salford is a booming University City and is a great place to invest. It offers good rail and road links, located near the M602 and the M60, together with a great bus and tram service. With a wide variety of bars, restaurants together with good sport facilities, three great retail parks and wide open spaces of parkland, Salford has something for everyone.’[1]

‘If landlords are savvy and carefully select where they invest, they can enjoy excellent gross annual leads. Rental income especially for HMOs can vary dramatically in Salford, depending on which postcode you look at. For example, Eades Street (M6 6PG), Seaford Road (M6 6DD), Blandford (M6 6BE), Welford Road (M6 6BB) are some of the most expensive areas in Salford, netting on average ££110 per room, per month as these streets/roads are very close to the university. However, generally, students pay up to £85-105 per room, per month including bills for high quality student accommodation,’ he continued.[1]

Salford in top 5 student buy-to-let locations

Considerations

Continuing, Liyanage said: ‘We know that the most important considerations for students when choosing rental accommodation is space, location and price. Our research shows that the majority of students in Salford want to live in high quality, shared accommodation, with good internet access and affordable bills.’[1]

‘Student accommodation can offer a number of attractive features to investors. The yields are high, as students settle for less space than other tenants; occupancy is typically very good; and it is neatly counter-cyclical, as more people go to university during economic downturns.’[1]

[1] http://www.propertyreporter.co.uk/landlords/salford-makes-the-top-5-for-university-buy-to-let.html

What to do if Your Property has been Sublet Online

Published On: December 9, 2016 at 10:15 am

Author: Em Morley

Categories: Landlord News

Tags: illegal subletting,student landlords,student tenants,subletting,tenants

Airbnb is Backing Sadiq Khan’s Call for Short-Term Lets Register

As the Christmas season approaches, online student lettings platform StudentTenant.com highlights the growing problem of tenants – particularly students – subletting their homes through websites like Airbnb. So what can you do if your property has been sublet online?

With the high expenses of the Christmas period and students returning home to their families, many tenants are taking the opportunity to sublet their accommodation online to make up the costs of this expensive time of year.

What to do if Your Property has been Sublet Online

While this might seem the perfect solution, there are many problems with subletting a property that you don’t own. The majority of tenancy agreements do not permit subletting without the consent of the landlord. As a result, the landlord must be notified and it becomes their decision.

However, many students will still sublet online without speaking to their landlord. Over the past year, StudentTenant has detected an increase among landlords that have seen their property on Airbnb or a similar platform, or found that the tenant has sublet online without any prior knowledge or discussion.

Tenants are reminded that it can be extremely dangerous to let a stranger into your home, despite the simple verification process involved in setting up an Airbnb account. Your roommates, neighbours and belongings must all be considered.

In addition, there are liabilities with insurance as well, particularly if the landlord is unaware that a person who is not on the lease is staying in the property.

Airbnb gives tenants advice on how to speak to their landlord about becoming a host, and what issues need to be addressed before putting the property online. It recommends looking at the lease, speaking with neighbours, and learning the rules of the building. Although the site does offer a £600,000 Host Guarantee, it does not act as homeowner’s or tenant’s insurance, and has a list of limitations depending on what country the home is located in.

The Managing Director of StudentTenant, Danielle Cullen, comments: “Students can be strapped for cash, and it doesn’t help during this busy season, but subletting a rental property is not the solution. Not only can it be a liability for your roommates and your belongings, but it can lead to serious insurance problems for your landlord, especially if they don’t know about the person renting. It also goes against most leases, which is a breach of a legal document.

“Of course, we can sympathise with the students, but we must emphasise that it is neither a safe nor legal route to take when trying to make a few extra pounds.”

So what can landlords do if their property has been sublet online?

“In the case of a landlord discovering that a tenant is subletting their rented space, there is a three-step process that needs to be addressed,” she explains.

“The first is to speak directly with the tenant. It could be as simple as not understanding that the tenancy terms are being broken. If the advertisement remains active, the next step is to speak with the sub-tenants or the subletting platform in order to seek further action. Finally, if nothing changes, the landlord may only be left with legal action against the tenant, and should seek advice.”