Northern Student Rents Cheapest

Student accommodation is a hot property investment asset but for landlords looking to maximise rents, they may want...

Student accommodation is a hot property investment asset but for landlords looking to maximise rents, they may want to avoid the north. According to new research from Accommodation for Students, rents in many northern cities with major universities have either stayed this same this year or declined. Conversely, prices are only continuing to rise in the south, helping to drive average national rental growth. This year the average student rent stands at GBP 79.42 compared to the GBP 77.04 recorded last year.

The average rental value in private halls of residences has increased by 1.5 per cent, 63 per cent higher in rental value than student houses at GBP 129.45. Demand for 'bills included' properties is also on the up, with the majority of stock concentrated in the north. Bills included accommodation fetches an average addition of GBP 8.08 in the south and GBP 5.51 in the north.

Unsurprisingly, Rents are highest in London, with an average of GBP 129 per week. This is followed by Egham at GBP 115 and Newport at GBP 113. Landlords are also able to demand high rents in Winchester and Middlesex, with an average charge of GBP 100 per week.

Manchester, Leeds, Sheffield and Nottingham have some of the most reasonable rents for students at GBP 74, GBP 74, GBP 69 and GBP 76 per week respectively. At the other end of the spectrum, many southern cities have seen considerable rises in rental values. Luton, Chatham, Bournemouth, Bath and Southampton has seen rises of 20 per cent, 19 per cent, 16 per cent, ten per cent and ten per cent rises respectively.

Simon Thompson, director of Accommodation for Students, said: "The student accommodation market remains robust and is still one of the most attractive yield classes for property investment. We are still seeing large scale development in student accommodation up and down the country. Demand for places at well renowned academic institutions is clearly having an impact on student rents."

Purpose built accommodation rents look set to increase further too, as demand outpaces stock. However, as the government moves towards such housing solutions for students, the time to invest is now.

- Tuesday 27 August 2013

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