3rd
Jun 2014
There is a gradual increase of University City councils invoking the Article 4 Direction. This is piece of legislation requires applications have to be made for special planning permission to be approved, so that homes can be "developed" into rented properties for upwards of three separate tenants who are not related.
Three cities come to mind that have already used the Article 4 Direction which are Leicester, Newcastle and Nottingham with more preparing to follow suit. They are unanimous in stating their reason for their concerns, that student let properties are severely diminishing the number of family homes because of landlords being able to make higher returns on their investments.
The number of available student "digs" could be drastically threatened, however the demand will still be there and increasing which will naturally force up the cost of renting with fewer properties in the marketplace.
Many landlords have fought "tooth and nail" against the introduction of the Direction in the three mentioned cities. A landlord association cites that if private landlords had not rented out the properties, then there would be many areas where properties would remain empty and in a state of disrepair. It also states that councils already have enough legislative power at their disposal, to protect numbers of family homes.
However across the country there are some winners in the areas that the councils have adopted this policy, at the private landlords' expense.
A Property Developer in Leicester is building luxury studios only 160 metres from the University Campus and they are targeting the postgraduate student sector which accounts for nearly 26% of student numbers in the City (9.800).
These types of development will help allay the councils' fears of the number of family homes being reduced within their boundaries.
A Student Housing Broker's spokesman, Arran Kerkvliet , said: “Postgraduate students are more in favour of having their own privacy than staying in student house-shares".
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