Landlords upbeat about student lettings market

Published on

76% of landlords who let to students think that demand for property is either good or excellent, according to a new survey by Paragon Mortgages.

Despite reports of a modest decline in student numbers for the 2012/2013 academic year, the buy-to-let lender says those landlords who do let property to student tenants are feeling positive.

Research by BDRC Continental of NLA landlords also reported on student landlords’ growing confidence in the market, with 70% saying that they rate the prospects for future investment in student property as good.

Of those surveyed in the PRS Trends Survey, 71% said that they find student tenants good or excellent in terms of the punctuality of paying rent. 53% also rated student tenants’ behaviour as good or excellent.

Any negative experiences reported by landlords centred on the maintenance of property during the tenancy agreement, with just 38% rating this as good or excellent, and only 24% rating the state of the property as good or excellent at the end of the tenancy agreement.

Landlords were also asked to comment on whether the changes in tuition fees would affect demand for student rental property. Of those letting to students 57% said that in their view there had been no change in demand for student lets.

“The student rental market is one of the largest specialist components of the private rented sector,’ said John Heron, managing director of Paragon Mortgages.

“Letting student property is appealing to landlords as they usually benefit from higher than average rental yields as rooms tend to be let on an individual basis. There are generally lower levels of arrears too as student tenancy agreements benefit from parental guarantees.

“Landlords who let a proportion of their portfolio to students are feeling positive about the market and their experience of letting to students continues to be good. This is an area of the private rented sector which will continue to thrive as long as the demand for university places continues.”

Graph: Landlords’ experience of letting to students (% saying good or excellent – PRS Trends Q2)

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Regions share £10bn allocation for 70,000 affordable homes

More than 70,000 social and affordable homes are to be built across six English...

Amanda Bryden appointed to lead Accord Mortgages

Yorkshire Building Society has appointed Amanda Bryden as director of distribution and incoming managing...

TMG backs Rotherham United Women in shirt sponsorship deal

TMG Financial Services has agreed a partnership with Rotherham United Women FC to become...

ModaMortgages adds fixed-fee options to limited-edition range

ModaMortgages has expanded its limited-edition buy-to-let range with new fixed and percentage-based product fee...

Rely cuts rates for landlords with large property portfolios

Rely has launched a limited-edition range of buy-to-let mortgages for landlords who own 11...

Latest publication

Other news

Why the FCA’s Protection Report is a wake-up call and a massive opportunity for advisers

According to Mortgage Advice Bureau, approximately 90% of all mortgages are secured through an...

Regions share £10bn allocation for 70,000 affordable homes

More than 70,000 social and affordable homes are to be built across six English...

Amanda Bryden appointed to lead Accord Mortgages

Yorkshire Building Society has appointed Amanda Bryden as director of distribution and incoming managing...