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

Accord introduces specialist underwriting support for larger loans

Accord Mortgages has introduced a dedicated larger loans service designed to support brokers handling...

How small and medium-sized lenders can fix the origination headache

We are constantly told that to fix the mortgage journey, we need to rip...

Halifax Intermediaries to rebrand as Lloyds Intermediaries

Halifax Intermediaries will rebrand to Lloyds Intermediaries in early 2027. The lender said there will...

OMS secures two CRM contract renewals

One Mortgage System (OMS), the CRM and loan origination platform for intermediaries and lenders,...

Barclays cuts mortgage rates

Barclays is reducing rates across its range of residential purchase, remortgage and existing customer...

Latest publication

Other news

Accord introduces specialist underwriting support for larger loans

Accord Mortgages has introduced a dedicated larger loans service designed to support brokers handling...

How small and medium-sized lenders can fix the origination headache

We are constantly told that to fix the mortgage journey, we need to rip...

Halifax Intermediaries to rebrand as Lloyds Intermediaries

Halifax Intermediaries will rebrand to Lloyds Intermediaries in early 2027. The lender said there will...