In the face of a looming crisis in the student rental market, Propertymark, the professional body for the property sector, is calling on the government to take swift action. A concerning trend has emerged as increasingly disillusioned landlords are contemplating selling their properties, according to Propertymark.
Citing a survey conducted by Save the Student, a prominent student money advice website, Propertymark highlights that nearly 40% of undergraduates have contemplated dropping out of university due to the exorbitant cost of rent. Shockingly, the survey also reveals that 7% of students have experienced homelessness at some point in their academic journey.
Furthermore, the study discloses that a staggering 64% of students have grappled with difficulties in paying their rent, shedding light on the challenges faced by the student population.
Sophie Lang, an expert in student lettings and ARLA Propertymark regional executive for Cornwall, emphasizes that students are bracing for rent increases in the upcoming academic year. Lang attributes this rise to a scarcity of available housing and the escalating mortgage rates burdening landlords.
“University attendance is on the rise, yet the available housing stock fails to keep pace with this growth,” Lang notes. “The demand for private sector rentals is intensifying, exacerbated by mortgage rate hikes and the repercussions of tax relief changes. Consequently, there has been a noticeable increase in Housing in Multiple Occupation landlords selling their properties in the past 18 months.”
Lang points to the escalating legislation governing landlords with Houses in Multiple Occupation, which she describes as more stringent than regulations for residential rentals. She predicts a continued exodus of landlords from the market if this trend persists.
“Universities heavily depend on the private rental sector to accommodate second and third-year students. It is imperative for the UK government to recognize the pivotal role landlords play in meeting housing demand, instead of perpetuating punitive measures against them,” Lang emphasizes.
In addition, Lang advocates for an increase in student maintenance loans in line with inflation. She argues that the rising costs of general household bills and the overall cost of living necessitate an adjustment to ensure students can cope with their financial burdens. The urgency of government intervention is underscored by the potential consequences on student well-being and academic pursuits if these issues are left unaddressed.