As the demand for student accommodation continues to rise, landlords and property managers find themselves navigating a dynamic market. Hermione Homes recognises the unique challenges and opportunities in providing quality housing for students. In this comprehensive guide, we’ll explore everything you need to know about letting to students in 2024 and beyond.
Rising Demand for Student Accommodation:
UCAS data shows that acceptances for the 2023/24 academic year were 24% higher than pre-pandemic levels in 2019.
International student applications rose by 2% in 2023/24, with a 4% increase in non-EU students.
The Higher Education Policy Institute predicts a need for 358,000 university places by 2035.
Despite this rising demand, there remains a shortage of available student accommodation.
Purpose-Built Student Accommodation (PBSA) development has fallen behind target, with 2023 completions at a record low and a UK-wide shortfall of around 580,000 beds.
Investment Opportunities for Landlords:
Private landlords can tap into the student accommodation sector due to demand.
Research highlights acute shortages in PBSA availability in cities like Durham, Southampton, Glasgow, Bristol, and Manchester.
Student rents increased by an average of 14.6% between 2021/22 and 2023/24.
Meeting Student Expectations:
Landlords must provide high-quality accommodation, fast internet, and other amenities.
Legal obligations and best practices are crucial.
Understanding future demand and supply is essential for successful investment.
As a landlord of a student property, you not only have to offer excellent accommodation and robust internet services but also navigate legal requirements and maintain positive relationships with your student tenants. If you get all these aspects right, the student accommodation market can indeed offer significant investment opportunities.
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