Posts with tag: students

Top university cities see property price rises of 27% in three years

Published On: September 6, 2016 at 10:30 am

Tags: average property prices,student landlords,students,University locations

Places have been secured. Cheap utensils are being purchased. Worried parents are already counting down the days until reading week.

Yes, the new academic year is nearly among us!

Today, a new report has revealed that average property prices in Britain’s top 50 university cities (based on the Guardian’s league table) have risen by more than 27% in three years. This equates to £66,000, according to a report by HouseSimple.com.

Student city soaring

The online estate agency’s figures show that 60% of cities ranked in the top 50 have seen property prices rise by an average of in excess of £20,000. This figure is alarming, considering that many students have to pay £27,000 for a three-year degree course.

Research carried out by the firm analysed how local property markets in top-performing university towns and cities have performed since 2013. This is in order to calculate possible price growth in the next three years. However, the research does fail to take into account capital gains tax and estate agent fees.

HouseSimple.com looked at university cities with:

average house prices below the UK average
which of the top 50 university cities have the lowest prices
where price growth since 2013 exceeds £20,000

Results from the survey are shown in table below:

University & Area	Potential increase in house prices over next three years based on growth since 2013	Current average house price, based on Land Registry House Price Index data
Manchester	£30,108	£147,700
Coventry	£26,625	£153,926
Birmingham	£42,697	£156,153
Aston (Birmingham)	£42,697	£156,153
UAE (Norwich)	£36,185	£182,114
Portsmouth	£35,284	£185,365
Southampton	£36,520	£188,140
Cardiff	£31,599	£188,251
Loughborough	£30,542	£193,606
York	£42,697	£229,881

[1]

Top university cities see property price rises of 27% in three years

Top of the class

In terms of buying a property as a student investment for offspring, parents should look at purchasing near the Queens University, Belfast. Here, current average prices are £110,042. Projected house price growth in the next three years is estimated to be around £20,000. Nottingham and Leicester could also prove savvy locations in which to invest.

University & Area	Potential increase in house prices over next three years based on growth since 2013	Current average house price based on Land Registry House Price Index data
Queen’s (Belfast)	£20,766	£110,042
Nottingham	£21,340	£120,474
Leicester	£21,917	£144,118
Sheffield	£20,226	£145,470
Manchester	£30,108	£147,700
Coventry	£26,625	£153,926
Birmingham	£42,697	£156,153
Aston (Birmingham)	£42,697	£156,153

[1]

Alex Gosling, CEO of HouseSimple.com, noted, ‘it’s hardly surprising that young people are thinking twice about heading off to university when they’re faced with a £27,000 headache that they have to pay back. But for those parents fortunate enough to be able to afford a second property, there could be a way to give your offspring a debt-free start in life, depending on where they go to university.’[1]

‘There’s a good chance parents of undergraduate will be expected to help cover the cost of rent, tuition or both. By investing in a second, your child won’t have to pay living costs, as the rent will cover that and the increase in capital value could cover the cost of tuition fees,’ he added.[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2016/9/top-university-cities-see-27-property-price-rise-in-just-three-years

Rents set to rise for 2016/17 students

Published On: September 5, 2016 at 12:01 pm

Author: Em Morley

Categories: Property News

Tags: private rents,rental rises,rents,student landlords,students

With students busy readying themselves to return back to their university campuses, a new survey might just make them think twice about expensive amenities.

Specialist student utilities and service provider Glide Utilities has conducted an investigation that reveals student rents are on the rise for 2016/17.

Rising rents

According to data from the ‘What Students Seek’ report, rents have risen by £10 per week year-on-year since 2013. This means the average student now pays more than £100 per week in private rental fees.

More than two million students are heading to university this September and this will not come as good news, with many already in severe debt due to rising tuition fees and living costs.

With rents spiralling, students are now quite rightly expecting more in return for their money. The report shows that 67% of landlords are now including bills as standard, the highest percentage ever recorded. This will hopefully make squabbles about gas and electric bills less common!

64% of students feel that double beds are important when considering a room to rent, while 40% said they are only interested in a room with an en-suite. 85% of modern students said that they would not even consider a property without a solid broadband connection.

Rents set to rise for 2016/17 students

Value

Despite persistently rising rents and worries around debts, 47% of students feel the rents they pay represent good value for money. More than three-quarters (76%) said that they were generally satisfied with their accommodation.

More interesting findings from the report suggest that more students are now using Google to locate suitable accommodation. 59% said that this was the case, as opposed to 25% who use traditional letting agents. 58% use a dedicated accommodation website to find suitable student property, while 44% go directly to the university accommodation office to find their residence.

James Villareal, CEO at Glide Utilities, noted, ‘in line with national rent increases, the cost for private student accommodation is also on the rise, which must be a consideration for students budgeting their time at university. Avoiding additional costs created by bills is one way students can help to manage their expenditure , which is why we’re seeing a greater demand for bills-inclusive rates from students and more landlords offering this a standard. Our report highlights what students are looking for in their accommodation and how they go about finding the right place to meet their needs.’[1]

[1] http://www.propertyreporter.co.uk/property/private-rental-prices-on-the-rise-for-2016-students.html

Student rents soar as expectations rise

Published On: August 25, 2016 at 8:31 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,student buy-to-let landlords,student property,students

Latest research has revealed that student rents have surged at a substantial rate during the last 20 years.

Benham & Reeves Residential Lettings data suggests that student rents have soared by 55.5% over the period, in comparison to 24% for non-student accommodation.

Student rental rise

The firm suggests that students are moving away from more traditional accommodation in favour of more luxurious flats and halls of residence. This is despite the hike in tuition fees over recent years.

Gone are the days when students settle for substandard properties, with many demanding well-kept, decorated dwellings with fast internet and en-suite bathrooms.

As part of its investigation, Benham and Reeves took a survey of its own offices and respective student properties and tenants. Over the 20 year period, the average monthly spend on rent has increased significantly. However, the average number of people sharing a property has dropped.

Expectations

Lettings Director at Benham & Reeves Residential Lettings, Marc von Grundherr, said, ‘part of the reason we see student’s expectations and therefore requirements changing is because of demographics. With the abolition of student grants and the introduction of tuition fees, many young people from lower income backgrounds have eschewed university degrees and gone straight into the workforce. Those who have sought university degrees tend to be more affluent while simultaneously, universities have topped up student numbers by welcoming greater numbers of overseas students.’[1]

‘These groups simply aren’t prepared to live in traditional ‘student houses’ with 5 rooms to one toilet and a very basic kitchen. They want to continue to live at the same standard they have at home. Private halls of residence have increased in popularity in response, many with rents approaching £400 per week. Unsurprisingly, many students are also turning to studio and one bedroom apartments that command a similar rental value.’[1]

Student rents soar as expectations rise

Clampdown

It is not just students becoming more refined that has led to an increase in expectation and rents. Increases in regulation enforced by councils, particularly a clampdown in houses in multiple occupation (HMO’s) means that larger properties normally shared by four or five people are becoming rarer.

A consequence of fewer people sharing a property is higher rents, alongside utilities and associated fees.

Another key factor is overseas property investment. Traditionally, overseas investors purchased property for their offspring while studying. Eventually, these properties were retained as rental investments.

Benham & Reeves Lettings found that 98.7% of their clients that did this found that when their children had left the UK at the conclusion of their studies, the increased property value covered the total cost of education.

Social change

Mr von Grundherr concluded by saying, ‘I think there is also greater social change, as well. Today’s students have grown up in an era of easy credit, cheap flights and mass luxury. The idea of slumming it is completely foreign to them. They would much rather go deeper into debt than shiver in an unheated house. Parents also have more concerns about their children’s safety and don’t want them living in a questionable part of town. The television series Fresh Meat may have only recently gone off the air but the premise of six students sharing a run-down Victorian house already seems dated

[1] http://www.propertyreporter.co.uk/landlords/student-rents-surge-as-luxury-digs-gain-popularity.html

Councillor Calls for Further Landlord Licensing Scheme in Bristol

Published On: August 19, 2016 at 10:51 am

Author: Em Morley

Categories: Landlord News

Tags: Bristol,landlord licensing,landlord licensing scheme,students

A councillor has called for a further landlord licensing scheme in Bristol, as she believes many people in the city are living in poor conditions.

Councillor Carla Denyer, of the Clifton Down ward, believes that a wider licensing scheme would help combat serious rental property hazards in the city, even in affluent areas such as Clifton.

Bristol’s first landlord licensing scheme was introduced in one designated area of Easton last year. It required all private landlords in the area to register with the council and agree to keep their properties in a good condition, as well as allow inspections.

Denyer reports that the scheme has successfully improved 700 private rental properties in the area, as well as resolved 199 serious hazards.

Councillor Calls for Further Landlord Licensing Scheme in Bristol

Earlier this month, the first successful prosecution under the scheme was led by the council, which prosecuted a couple for not obtaining licenses and for not providing housing officers with documentation covering house safety.

The couple, Jagtar and Jagdish Kandola, was ordered to pay more than £38,000 in fines and costs, in a case that they failed to turn up to.

Now, Denyer has joined community housing group Acorn and Bristol’s student union housing representative to call for the scheme to be introduced across the city, particularly in areas with a high student or private tenant population.

A second scheme is currently underway in Eastville and St George, with private landlords having until the end of September to register or face prosecution.

Denyer says: “We want the council to extend landlord licensing to make sure landlords provide minimum standards in other problem areas of the city.

“People may think of Clifton Down as a privileged area, but behind the grand front doors, there are many untold stories of damp, mould and dangerous living conditions. I have met people who pay extortionate rent, yet have daily battles to get their landlord to fix a broken toilet or mend a leaking roof.”

She adds: “We are now calling on the mayor to look at extending the scheme to other areas of the city, following consultation with local communities.”

Acorn has also been campaigning for ethical lettings in Bristol. Its spokesperson, Nick Ballard, believes the licensing scheme us “vital”.

He explains: “Like any business, private rentals must be properly regulated and decent standards ensured.

“Landlord licensing is a vital first step in creating a register of landlords that will allow much-needed oversight. Permitting local authorities to inspect privately rented property as a matter of course will protect tenants from the revenge evictions that too often follow when we complain ourselves. Acorn is committed to the creation of a progressive and fair rental sector, and landlord licensing is a fundamental requirement for this.”

Students will hugely benefit from landlord licensing, claims Stephen Le Fanu, the Student Living Officer from Bristol Students’ Union, who is also a member of the Acorn student group at the University of Bristol.

“Our recent student housing survey showed that both University of Bristol and University of West of England students are frequently having to live in poor conditions and are charged rip-off fees,” he says.

“This is simply not acceptable. We have formed a group of students from across the city to tackle together some of the problems that students are individually facing and want to invite all those interested to get involved.”

Landlords, what do you think about the new proposals?

Over a Third of Landlords Plan to Invest in Student Property This Year

Published On: June 6, 2016 at 8:43 am

Author: Em Morley

Categories: Landlord News

Tags: property investors,student landlords,student property,students

Over a third of buy-to-let landlords plan to invest in student property this year, according to a new report by The Mistoria Group.

The research by the student property investment specialist shows that one in ten student landlords say their Houses in Multiple Occupation (HMOs) allow them to offset the new tax rules introduced by the Chancellor and remain profitable, while a further 50% do not believe any other asset class offers the same yields and return on investment as student property.

Over a Third of Landlords Plan to Invest in Student Property This Year

It seems that the new 3% Stamp Duty surcharge for buy-to-let landlords and second homebuyers has not dampened enthusiasm for the student property market.

While the rest of the buy-to-let sector may have slowed down, the same cannot be said for student property investment, according to the group. The report indicates that 35% of student landlords purchased HMO properties in the first quarter of 2016 to beat the higher tax rate, and a further 43% plan to acquire between two and three new student properties over the next 18 months.

If you are considering an investment in student property, here are some helpful dos and don’ts to think about: /student-property-investment-dos-donts/

The Managing Director of The Mistoria Group, Mish Liyanage, says: “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.

“Student property is a robust asset class. Since 2011, student accommodation has outperformed all other traditional property assets and has been the strongest growing investment property market in the UK. It has also continued to be one of the most resilient investment sectors, with rental incomes and property values remaining stable or increasing. The attraction of the student accommodation sector has been driven by structural undersupply and positive rental growth year-on-year.”

He advises: “This growth in student numbers is a great opportunity for landlords and investors to provide the right type of property that will attract lucrative students. Student accommodation has proven to provide better rental yields and there is an annual market for new students. What’s more, the rent is guaranteed by a parent or guardian and is paid promptly.

“A high quality HMO in the North West, which will house four students, can be purchased for just £160,000. The return on investment is very attractive too, with 3-8% cash rental and 5% capital growth.”

A separate study by LendInvest recently confirmed that landlords seeking the highest rental yields should look to buy properties in university towns in the North West.

The Dos and Don’ts of Student Property Investment

Published On: May 27, 2016 at 9:53 am

Author: Em Morley

Categories: Landlord News

Tags: HMO's,property investment,student landlords,student property,students

With record numbers of students attending university, investing in student property can be a lucrative business. But what are the dos and don’ts?

Demand for rental property in many UK towns and cities has been driven by high numbers of students, causing a severe shortage of affordable student property in parts of the country.

Last year, the Government lifted the cap on the number of places that universities can offer by 30,000, causing a rush of students to UK institutions. According to UCAS, the amount of university applicants has reached a record high, with recent data showing a 3% annual increase in the number of applications.

The fastest growing sector is non-EU students, with levels up by 50% over the past ten years.

In the last 20 years, there has been extraordinary growth in student numbers, with the amount of international students expected to rise dramatically over the next decade.

The Dos and Don’ts of Student Property Investment

House and flat share website SpareRoom.co.uk reports that up to 22 professionals and students competed for every available room in university towns and cities in 2015. Just 40% of rooms in the UK’s top 25 university cities are available to students, as some landlords are reluctant to let to this type of tenant.

The Managing Director of The Mistoria Group – one of the UK’s leading property investment companies – Mish Liyanage, says: “Unfortunately, university-managed accommodation has not kept pace with the growth in student numbers, and this is driving increased demand for HMOs [Houses in Multiple Occupation] and PSBAs in many UK towns and cities.

‘Traditionally, universities were responsible for providing good quality student accommodation. However, over the last ten years, demand for university accommodation has outstripped demand and the private sector has supplemented some of the shortfall.”

He continues: “The student property is a robust asset class. Since 2011, student accommodation has outperformed all other traditional property assets and has been the strongest growing investment property market in the UK. It has also continued to be one of the most resilient investment sectors, with rental incomes and property values remaining stable or increasing. The attraction of the student accommodation sector has been driven by structural undersupply and positive rental growth year-on-year.

“Without doubt, the student rental market is the most financially lucrative for investors and landlords if it is managed well. An investor can currently buy a four-bed HMO in a good location for students and professionals, fully refurbished and furnished and tenanted for the coming year, for less than £165,000 in the North West.”

He insists: “Investing in student HMO accommodation offers a long-term investment option, as the property is highly likely to be in constant demand throughout the calendar year. Typical rents are significantly higher for student properties than a comparable buy-to-let property in the same city.”

If you have decided that student property is the investment option for you, here are some helpful dos and don’ts to ensure you make a lucrative investment:

Dos

Find an area with a reputable university that has a good reputation and high ranking.
The property should be 30 minutes’ walk or less from the university.
Find a reputable and credible letting agent to help you manage the property.
Go for student houses rather than pods. Houses have a good resale market and can be mortgaged.
Rent prices should be all inclusive of bills and broadband.

Don’ts

Invest in a student pod.
Go for off-plan deals where you pay capital upfront and wait for years before you acquire the property.
Offer small, cramped rooms with no living space in the house.
Cut costs and go for a lower-spec property.
Look to flip – student properties are medium to high yielding and long-term investments.
Try and manage the property on your own if you have no HMO experience.

If you’re considering a student property investment, now is the best time to get into the market, ahead of the September rush.