Are price sensitive students a myth?

Research has suggested that students are now more budget conscious than ever when it comes to renting accommodation, with results showing that they are choosing to pay more for their accommodation as well as their utilities.

Related topics:  Landlords
Warren Lewis
12th November 2015
student house 2

Student digs used to be nothing more than miniscule rooms, with communal bathrooms and minimal facilities. But today tells a very different story, as modern student digs look like they’ve come straight out of a luxury property magazine, with plush décor and everything a student could need, along with a price tag to match.

Student accommodation is becoming more and more expensive, and the rising demand has led to record levels of investment this year, and students are willing to pay for it.

In early 2015, student utilities provider, Glide, conducted their annual ‘What Students Seek’ survey in partnership with Accommodation for Students. Results of the study showed that students are heavily influenced by the practicalities of accommodation when searching for a place to live at university, with 74% of students rating bills inclusive as either an essential or important factor when choosing property. 82% also rated fast broadband access to be the number one selling point of a rental property, along with 60% of students ranking the spaciousness of the accommodation as one of the most important features when choosing where to live.

During May 2015, Glide also introduced a new feature on their website, allowing students to choose the amount they pay for their utilities each month. Results of this suggest that students are making a conscious decision to overpay to ensure their bills are covered whilst living away from home.

Following Glide’s ‘Get a free quote’ process, customers are now required to choose whether or not they would like to pay the recommended amount they have been quoted, based on the size of their property and number of tenants in their household. Customers can now pay up to 20% above the suggested recommended amount or down to 10% below their quote.

Unexpectedly, Glide’s online sign ups have shown that 85% of students signing up through the website have chosen to adjust their payments to more than the recommended amount, with +5% above the recommended quote being the most popular option chosen. This suggests that students are actively budgeting their money to ensure their utility bills are covered.

Richard Price, Glide’s Sales & Business Development Manager, had this to say: “Gone are the days of stereotypical students living in shabby accommodation lacking in home comforts. The modern day student now comes with much higher standards and expectations of what their accommodation should provide for the money they are paying, and we are now starting to see a change in their approach to utility bills too.

One thing that has become clear from the rising expectations of students is that landlords and student property developers need to stay ahead of the game and ensure they are able to meet the needs of student demands.

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