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Wednesday, May 10, 2017

Should student landlords be worried?

Online letting agency, StudentTenant, predict a fall in student numbers over the next three years.

The site report that the recent  UCAS figures show a worrying fall in applications, in large part down to Brexit uncertainty, with EU student applications down 7%.

Alongside these Brexit wobbles, domestic applications have also dipped, down 4.3%.

UCAS applications for 2017 -
  • England down 23,120, a drop of 5.6%.  
  • Wales down 1,510, a drop of 7.1%.
  • Northern Ireland down 930, a drop of 4.5%.
  • Scotland down 890, a drop of 1.9%. 
StudentTenant say this decline applications in 2017 could cost the economy nearly £1 billion and could cause a drop in rents gathered by the student rental sector of around £383m over the next three years, by taking the average annual rent figure of £4,834.

Danielle Cullen from the site comments -

“The huge fall in applications will have a significant impact on student rental property demand. Landlords are the ones who will feel the strain the most, as supply could well outgrow demand for student properties as we see fewer students at universities. This is a complete contrast to what we have been seeing in the student market recently, with an undersupply of properties for a long time in a lot of areas. In the upcoming election, the political parties must recognise this and put forward a plan to ensure Britain remains welcoming to international students. Not just for the student rental market, but to attract the world’s best talent to British universities.”

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