17^th Nov 2017

Across various areas in England student rents have, in the last twelve months, increased by as much as 18% as savvy landlords are taking full advantage of the lack of supply of accommodation for scholars.

Levels of student finance are determined by their household income that their parental homes have, and the lower the income the higher the loan. Those students, who live in the city with households generating a yearly income of less than £25,000, can be entitled to the maximum student loan of £11,007 per year when living away from home.

Danielle Cullen comments:"I’m consistently shocked when I see the rising student rental price figures each year. The student property market is starting to spiral out of control. It’s becoming apparent that higher education is becoming less and less affordable for students from lower-income households, who are unable to get additional help with their finances."

She asks: “Who’s going to support students from low-income households? Sure they may be able to earn some money from a part time job, but that then starts to uncover ethical issues. Is it fair some students have less study time as they are unable to afford to live? Will their grades suffer because they have to work excessive hours to pay for their home whilst they are away at university?”

Danielle Cullen believes that there has been a steady rise in student rents as many are looking at the higher end of accommodation, rather than putting up with houses that are 'so-so'.

Two of the major reasons for the hikes in prices are that some landlords are moving out of the student market to concentrate on mainstream renters reducing the levels of student accommodation, whilst others are spending time and money on improving the standards of their rental properties and charging higher rents.

Cullen points out that: “In the past, landlords could invest into an older property, fill it with some second-hand furniture, and bring in a regular income over the course of the university year. But, with the gradual rise in standards for student accommodation, we’re not only seeing landlords drop out of the student rental market but we’re also seeing a rise in prices."

She finishes by saying: “Given the choice, many students would prefer to live in high-quality accommodation, and landlords need to improve their properties to remain competitive. But this is driving rental prices up even more. Landlords should be sensible with their renovation spending as 5* luxury is great, but doesn’t hold up well with new tenants passing through every year.”

News Archive »