Photo credit: Tulane Public Relations
The average rental value (ARV) in the student accommodation sector is now £79.27 per week per bedroom, down from £79.64 in 2013, according to Accommodationforstudents.com.
In comparison to the rest of the UK’s rental market, which has risen on average by 2 per cent over the last year (according to report by LSL Property Services), the student sector has remained stable as a result of a relatively competitive market – welcome news to those students seeking last-minute accommodation ahead of the start of the new academic year.
London remains the most expensive location with an ARV of £136 per week per room, up 5 per cent on last year, followed by Kingston (up 8 per cent to £108) and Winchester (up 6 per cent to £107), all of which have held top ten positions for the last three years.
Indeed, high rents remain concentrated in the South, the South Coast, Kent and Greater London, although rents have actually increased more in the North (up 3.6 per cent) and decreased more (down 3.5 per cent) in the South.
The Midlands and North West show reasonably low rents, with cities such as Wolverhampton (£58) and Bolton (£61) offering rents 22 per cent lower than the UK average. There is more variability in the North East with rental values ranging from the average lowest of £50 in Stockton to £88 in Durham. This suggests regional trends are not strong and the student rental market is more city-dependent. This can fluctuate depending on popularity of university, based on courses available each year. Newcastle under Lyme, for example, saw this year’s greatest increase of 26 per cent from 2013, but still offers a below average rental fee of £76.
The lowest recorded rental value was £17 per week per room located in Coventry, and the highest was £199 per week in London, meaning the UK rental range is £182. This is £32 greater than in 2013, suggesting a widening gap in UK rents.
Simon Thompson, Director of Accommodation for Students, says there is now more choice for student house hunters than ever before: “Increased competition has helped stabilise rents, which is good news for students, but also for landlords, who can be reassured that the student rental sector remains robust and is still one of the most attractive yield classes for property investment.”