Landlord News

Student landlords shrug off tuition fee worries

Britain’s biggest student landlord is on course for rental growth as demand for university accommodation is surging despite worries about increased tuition fees. Bed space reservations for the next academic year hit 73% of available occupancy – up from 62% in March and slightly ahead of the May 2010 level of 71%. In a trading statement for March 2 until May 18, the company said rental growth is expected to rise by 3% – 4% for the next academic year. Unite is set to deliver more 4,500 student rooms across the country over the next three years, giving the firm a capacity of around 42,000 bed spaces. The company also has an agreement with the London Olympic Games organisers to provide 3,600 rooms for the Olympic and Paralympic Games. Unite said: “Applications to study at UK Universities are 2.1% above 2010/11 levels indicating that, with no increase in funded places, 210,000 applicants will not obtain a place at University this year, which underlines the continued strength of demand for places. “With the introduction of the higher tuition fees in 2012 and approximately 70% of Universities indicating they will set their fees at or above £8,500, we are anticipating a reduction […]

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Rising rents rocket back to record high

Rents have recovered to match their record high as the lack of mortgages pushes would-be homebuyers to rent property. With average rents hitting £692 per month in England and Wales, landlords are expecting income to rise to new peaks for the rest of the year. The Council of Mortgage Lenders, speaking for all the UK’s major banks and building societies, has already stated lending is likely to remain restricted for several months. Year-on-year, rents are up 4.4% and yields are increasing as well – up to 5.1% as rents outperform house prices. David Brown, commercial director of LSL Property Services, said: “The rental market is heating up as thousands of would-be tenants have taken advantage of the weather and long weekends to hunt for new rental homes. “Even a slightly stronger supply of property has failed to cool rental inflation as landlords take advantage of the growing number of mortgage products available. Competition is fierce and tenants are paying a premium to secure properties. The average landlord is charging nearly £30 more a month than a year ago, and the rate of increase is unlikely to tail off as lending to first-time buyers remains subdued and demand for rental homes […]

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