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STUDENTaccommodation
‘It is essential
expected average rents to stay the same as always had a very strong student market
they are, a year from now. Only 6.6 per and the student investment market has
that parents
cent took the gloomy view that rents would picked up over the last four months,
looking to
tumble by 10 per cent. The desire to buy to mainly fed by investors finding it hard to
purchase property
let is still alive and beating. make money from their savings and buying
up three or four-bedroom properties.
for their children ensure
Great returns There is a particular estate in nearby
that the fi gures add up
Says John Heron, Managing Director of Englefield Green where you can pick up a
Paragon Mortgages, a specialist provider of good two to three-bedroom property for
before they make the residential buy-to-let mortgages, “Student around £200,000 or central Egham for
investment.’
property can generate great returns around £240-250,000 for what eventually
because they are usually let on a per room divides up as a four-bedroom property.
JOHN HERON, PARAGON MORTGAGES basis, which tends to produce a better yield These are good investments, as getting
than letting to a single occupant. £1,600 on a £250,000 property is over
be given the option. University campuses “However, investors have to ensure that seven per cent return and a lot of them are
are bursting at the seams and will only they research the local area and select the making it work at 8% return and above.
guarantee places for first year students. right property for the student market. It is Rooms have been rented out from
Leeds University says it gets more essential that parents looking to purchase anything from £380 to £450 pcm.
BBC
applications for single, en-suite rooms on property for their children ensure that the “In general, the student market is very
campus than they have places available, figures add up before they make the strong and makes up more than a third of
C
opyright with up to eight people chasing each place. investment. Investors also need to make our overall business for the year. We have
Pic: The city has more than 72,000 college and sure they are clued up about the various found this year more landlords who would
university students, the third biggest after rules and regulations, such as those usually let out privately have come to an
London and Manchester. governing Houses in Multiple Occupation.” agent. Maybe it’s to do with demand or
Many parents, noting the competition Interestingly, the best rental yields don’t because there is more legislation now and
for rooms and adding up the unrecoverable always come from the most obvious they want to make sure they are doing
cost of paying for them, decide to buy a flat locations. According to Paragon things right.”
for a son or daughter. If they let spare Mortgages, Durham – with one of the
rooms to fellow students and have the time country’s smallest student populations – ‘There are
to ride out the market downturn before delivered the best return of the 50 locations
currently
re-selling, they have at least a chance of analysed last year. The cathedral city was
coming out financially ahead. After all, followed by Nottingham – which has two 250,000
there has rarely been a better time to invest universities and 60,000 students. Some less
full-time
in property. Halifax reports the house price established university towns strongly
to earnings ratio is at its lowest for seven outperform Oxford, Cambridge and
students in London,
years. Mortgage rates are low and there are London in the yields stakes. Stoke, Hull,
and only 40,000
signs the fall in the market is slowing. Derby and Swansea all provided a good
return. In Sheffield, property built to
purpose-built student
Student Zsuzsi’s studio appeal to the student market is credited as
housing bed spaces
Student nurse Zsuzsi Judd, 20, who is having helped to regenerate the city centre,
studying at Thames Valley University, was spreading the benefits to local agents.
available to them.’
helped by her family to buy a studio JOHNNY MANNS, HIVE STUDENT RESIDENCES
apartment in Barratt West London’s Great Eight per cent yields in Surrey
West Quarter development in Brentford. Hannah Richardson is Branch Manager of Eco friendly and a free bike
Current market conditions allowed her to Townends Lettings in Egham, Surrey, The chronic shortage of affordable student
negotiate a £20,000 discount on the price. home to Royal Holloway, University of housing in London is legend. However,
As the studio was the former show London and comments, “Egham has Hive Student Residences hopes to ease the
apartment, the price also included all the pain, at least a little. The company, set up
soft furnishings. As a bonus, Zsuzsi
‘In general, the
in 2006 by Johnny Manns and Johnny
discovered the design of the apartment, Gallagher, aims to provide 3,000 interior
where everything from the bed to bedside
student market is
designed, environmentally sound student
tables fold away, minimises the opportunity
very strong and
rooms in the capital. The first two schemes
for dust to settle on surfaces. As she
suffered from dust allergies, she was
makes up more
are due to open this year in Hoxton and
Bethnal Green, with prices starting from
delighted to find her health improved.
than a third of our overall
£210 per week, including utility bills and
Current prices at Great Western,
Brentford, start at £190,000.
business for the year.
broadband. Journey times to the main
universities should be between 15 and 30
According to a consumer confidence It has picked up over the minutes, they say. However, to encourage a
survey carried out by the property website
Rightmove, almost half of the 22,800
last four months.’
low carbon footprint, each resident will be
provided with a folding bicycle. It’s a
home-movers canvassed said they HANNAH RICHARDSON, TOWNSEND LETTINGS gimmick, of course, but with luck won’t
PROPERTYdrum JUNE 2009 29
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