Student rents remain static according to new report

Student rents remain static according to new report

An annual report into student accommodation, compiled by student utilities and service provider, Glide Utilities, has found that private student rent has remained at an average of £100 - £119 a week, for the second year running.

The news comes as a respite for students, who face increasing debts, with the Institute for Fiscal Studies (IFS) last month reporting that students in England are likely to graduate with debts just shy of £60,000. The fourth annual ‘What Students Seek’ report found that 20% of students don’t envisage paying off their loans, a number that is dramatically out of sync with the IFS, which forecasted that three quarters of students will never be able to pay off their loans.
 
Accommodation represents the second biggest spend for students during their studies following fees. The What Students Seek report found that 72% of students pay between £80 and £139 per week. University locality creates some variance with 15% of London students paying over £200 a week, and 69% of students in the North East paying less than £90 a week.
 
Almost half, 45%, of students surveyed said their accommodation offers good value for money, but 36% disagree, suggesting that while rents remain static, landlords need to understand students better to attract and retain the best tenants; a growing concern given the continued increase of modern student developments on the market.3

The annual What Students Seek report uncovers what students look for when it comes to their accommodation to reveal common themes that could help landlords improve the market appeal of their HMO property.

According to the report, the average student lives with four other people, 39% sharing with five people or more. However, when asked how many people they’d ideally like to live with, almost half, 48%, indicated they’d like to share with just two or fewer people in their next property.

It appears that a television is not going to sway students into renting a property. The majority, 60%, rated having a TV as the least important factor when choosing accommodation. After cost, a fast broadband connection is by far the most important factor for students, followed by good storage space, bills inclusive and double beds.

The majority of students are positive when it comes to the way their property is managed; 57% shared this view. However, almost a quarter, 23%, felt negatively citing the following top issues to be causing problems:

1: Lack of response on maintenance issues, (37%)
2: Poor upkeep of the property, (30%)
3: Lack of communication, (28%)


Three quarters of students said that having bills included in their rent was either essential or quite important when considering a property, making this an easy fix for landlords and letting agents in attracting tenants.

One in 20 students said they had been given either a cash or non-cash incentive for taking their current property. Although very low, 2% said they had been taken out for a drink by their landlord

The report also revealed the best university cities for landlords to invest in, based on overall tenant satisfaction ratings and annual yield. Although there are great investment opportunities across the UK, university cities in the North East consistently rate highly for both annual yield and tenant satisfaction, with properties in Middlesbrough providing a 16.1% annual yield and 82% satisfaction rating. Durham and Sunderland followed close behind while on the other end of the scale, London rated lowest with just a 2.7% annual yield and 76% satisfaction rating.
 
Outside of accommodation needs, the report also pointed to a decline of the infamous student social life. When asked how respondents funded their social life, almost one in five, (17%) admitted that they didn’t have one.  Despite this over a third still rated the proximity to bars and clubs as an important factor when choosing accommodation.
 
James Villarreal, CEO at Glide Utilities said of the 2017 What Students Seek Report; “It’s good news for students that private rental costs remain static, especially since the price of living in Halls of Residence continue to rise. However, it’s very likely that costs will rise moving forward as the ban of tenant fees will inevitably get passed through to the price of the rent., therefore landlords and agents can offer students greater value for money  by offering bills included and ensuring that properties are well maintained and efficiently managed.”

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Latest Comments

Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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