BTL Landlords Recommended to Consider Entering Student BTL Sector

Online rental portal focusing on the student buy to let sector recently revealed figures, which suggest that student lettings have increased by approximately 19% during the last 5 years. Accommodation For Students (AFS) believes that the 19% increase might be another sign of resilience in the student BTL sector, especially given the fact that rental rates in the mainstream BTL market have fallen by 6% in the course of the past year. The situation on the residential property market is even more worrisome in Central London, where the level of rents has declined by some 18%, which has not been seen since the year of 2000. Students’ rents, on the contrary, have increased by 1.5% since April 2008, which runs counter to the economic downturn. Landlords who wish to enter the students’ buy to let market might consider investing in London properties; however, a careful research is required as there are certain neighbourhoods that already see an oversupply of properties. It is ironic that the sector of undergraduates sees an undersupply of rental properties. As undergraduate students prepare for the 2009/2010 academic year, some 100,000 students will be looking for accommodation in London.  AFS’s statistics shows that BTL landlords can sometimes expect as much as 10% yields in areas close to university campuses. The situation in other towns is also quite positive, with recorded yields of 7.9%. Experts suggest that BTL landlords, who decide to enter the students’ rentals sector, ask student parents to act as guarantors of rent payments.