STUDENTaccommodation
Great West
Quarter interior
and exterior right
meet the same fate as the Paris velib bike
‘We have had a
Loughborough University, celebrating its
scheme which ended up with thieves Centenary year this year, has 36,000
riding off with 3,000 of them and dumping
number of
students and 3,000 staff, making a strong
them in the Seine.
well-heeled
impact on the local property market.
Johnny Manns says, “There are currently “There is a strong demand in the town
250,000 full-time students in London, and
students who
from parents buying homes for their
only 40,000 purpose-built student housing
were doing European
children at the university, and from
bed spaces available to them. Around 90 amateur and professional landlords,” says
per cent of this existing accommodation is
business degrees,
Tony Cotterall, of the local Frank Innes
run by universities and allocated to first
especially from America.’
estate agency. “We have a golden triangle
year undergraduates, so for well over of Victorian terraced houses which sell
200,000 second and third year under-
MARC VON GRUNDHERR, BENHAM & REEVES
from £100,000, within walking distance of
graduates and post-graduates there is a the campus. They are always popular. A
huge shortfall in the type of sought-after, riotous parties and furious landlords, but two-bedroom apartment costs from
quality accommodation offered by secure others are delighted to welcome them as around £110,000.”
private student residences.” tenants. With parents standing as
There is planning consent for three more guarantors, and rent usually paid up six
‘Parents want
schemes in Shoreditch, Tower Hill and months in advance – a year if they are
Southbank and a sixth development is lucky – landlords are reassured of income
to be assured
underway in Olympia, West London. It is a and good behaviour.
their children
small beginning. Knight Frank, which has a Says Marc von Grundherr, director of
dedicated Student Property Division Lettings at Benham & Reeves in
are living in high
advising on development and investment, Kensington: “Landlords should never
quality accommodation
estimates around a fifth of the city’s student discount students as tenants. We have had
population comes from overseas. For a number of well-heeled students who
and with new build
London to continue to attract those were doing European business degrees, properties they can be
students – five of the capital’s universities especially from America. What landlords
assured of that.’
are ranked in the world’s top 200 – and must be careful about is getting a sponsor
there must be somewhere for them to live. or parental guarantee in this country. JULIE RAYNER, GLEESON HOMES
There is no point in the guarantor being in
Guarantors reassure landlords Qatar where it would be difficult and Only the best for our children
While dedicated student schemes operated expensive to pursue a claim.” Close to Manchester’s city centre, Gleeson
directly by the developer don’t help agents Martin Bikhit, whose estate agency Kay Homes’ Grove Village development has
make money, there are thousands of & Co covers London’s Marylebone and been popular with buy-to-let investors and
students who prefer to take the private Bloomsbury – prime central areas for parents buying for student children. Prices
route. Some London letting agents don’t students – points out the advantages. at the development start at £89,950.
like to admit to renting to students, fearing “There is a strong market for post “With prices being so low, many believe
graduate or international students which is this is now the time to buy,” says Julie
‘Some Russians
sometimes overlooked. We have let Rayner, Gleeson’s Sales Director. “Parents
apartments to international students with tell us they think this is an opportunity to
recently rented wealthy parents for large sums. get a foot on the property ladder for their
a two-bedroom
Some Russians recently rented a two- children and see it as an investment for
bedroom flat for their son, who was their own and their child’s future.
fl at for their son, studying at the London Business School, “Parents want to be assured their
who was studying at the
for £800 a week,” says Martin. “There is children are living in high quality
always a concern from landlords that even accommodation and with new build
London Business School, at those price levels some student tenants properties they can be assured of that.”
for £800 a week.’
would party too hard, but in the current
climate some landlords are without a
Any views on this or advice to share?
MARTIN BIKHIT, KAY & CO better alternative.”
www.propertydrum.com/articles/students
PROPERTYdrum JUNE 2009 31
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