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Student Rents Surged Nearly 60% in 20 years

Over the last two decades, rents in the student market have surged substantially higher than rents for non-student properties, as demand for luxurious flats and private halls of residences, according to the latest research.

Over the last two decades, rents in the student market have surged substantially higher than rents for non-student properties, as demand for luxurious flats and private halls of residences, according to the latest research.

Over the last two decades, rents in the student market have risen at a substantially higher rate than residential rents, according to the latest research.


The findings, compiled by estate agent Benham & Reeves, found that the average monthly rent for students was now 55.5% higher than it was in 1996, whilst in non-student properties, the rents have raised by 24% over the course of the last 20 years.


Surveying the various student properties in their offices and their tenants, the research found that the rising demand for student accommodation in the UK, highlighted earlier this year by student property portfolio investors Unite Group, has helped to drive rental prices up within the market, in addition to other factors.


Marc von Grundherr, Lettings Director for Benham & Reeves, highlighted how the demographic makeup of the average university student in the UK is now beginning to shift.


‘[…] universities have topped up student numbers by welcoming greater numbers of overseas students. These […] want to continue to live at the same standard they have at home. Private halls of residence have increased in popularity in response, many with rents approaching £400 per week.’


Last week, UCAS, the University and College Admissions Service confirmed the number of international applicants rose to a new record of 26,600 – up 11% from the previous year.


Marc von Grundherr also believes overseas investment is another factor contributing to the exponential surge in student rents. According to the firm, overseas buyers have a tendency to invest in their children’s university towns to provide them with a secure choice of accommodation. After their child has graduated, they tend to retain these properties as rental investments, says the firm.


The firm's figures show, in fact, that 98.7% of the their clients who have invested in their children’s accommodation had seen their property value increase, providing enough revenue for them to cover education expenses. In 44% of the cases, rising property values had also allowed parents to cover the cost of their child’s living expenses including flights to travel home.