Landlord Assist champions student lettings market

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by Gill Montia

Landlord Assist is encouraging landlords to consider entering the student lettings market as a means of beating the recession.

According to the firm, which specialises in tenant eviction and rent arrears collection, yields in university towns can be “considerably higher” than for normal buy-to-let properties, sometimes as much as 10%.

Managing director, Graham Kinnear, points out that very few students are able to afford mortgages.

He believes there is plenty of scope in the student market, which “tends to be predictable and reliable as students tend to stay in a property for at least a year at a time”.

The student population of the UK is still growing, with latest figures from the UK University & Colleges Admissions Service showing an 8% increase in higher education applications in 2008.

In addition, students invariably return to their home towns once studies are completed so that cases where student tenants refuse to leave a property are uncommon.

However, Landlords Assists warns that expectations on yields should be realistic in the current economic climate, as “landlords across the board are fighting to retain tenants”.

In addition, they are competing with so called “accidental” landlords who may be offering cheaper rents because they are unable to sell their properties.

Prospective landlords looking to enter the student market must also consider legislative requirements such as the licensing of houses in multiple occupation, and a higher level of wear and tear should be anticipated.

Last month, student accommodation specialist, The UNITE Group, said it expects student number to rise by around 42,000 in the 2009/10 academic year, with overseas students putting in a strong appearance, as Government funding cuts could restrict the UK undergraduate intake.