A Changing Market
It is no secret that the Student Accommodation market is changing, yet many accommodation providers are still not yet aware of it. LetsUni is drawing attention to this situation so accommodation providers will be able to react before it’s too late.
Since the introduction of the Assured Shorthold Tenancy made it possible for landlords to rent a house without the risk of getting stuck with a ‘sitting tenant’, attitudes of investors and, importantly, lenders to investment in the private rented sector have warmed. Student accommodation has enjoyed an extended period of being viewed as a potential goldmine; a house that might otherwise only be suitable for a small family could be rented to perhaps four students, at a tidy profit. Of course, market forces being what they are, this trend could not continue forever, and over time purchase prices have risen and the market has become saturated.
However, there is another factor that is creating even more challenges for the traditional student landlord – purpose-built accommodation. Several large developers are investing heavily in building accommodation blocks that can house hundreds, or even thousands, of students. Nottingham City Council, for example, have predicted that by 2007/8 there will be enough purpose built blocks in their area to house half of the students currently in normal private rented accommodation.
You might want to read that last sentence again. Within a few years, there could be a 50% chance that any given student house will not be able to find tenants.
Of course, without a crystal ball we can’t say exactly what will happen, and how popular these blocks will be with students, but we can be certain that the chances of a ‘void’ period for a student house will be increasing dramatically.
At LetsUni, we want to help responsible landlords to minimise the chances of this happening to them. For most landlords, an Accreditation Certificate for your accommodation will be worth its weight in gold – Accreditation allows you to promote your property at the very forefront of students’ search for accommodation. The core focus of Accreditation is on safety standards within accommodation; once you’ve got that sorted, you should make your accommodation stand out from even the other Accredited properties by presenting it at its best. Consider refurbishing the property if it’s looking dated.
Summary
- Some student accommodation is already proving hard to let, and the situation is going to spread.
- LetsUni want to help good landlords to get their properties to stand out from the crowd.
- Accreditation and modernisation are two key areas to focus on to improve your chances.