Rush for university places could push up rents
Fierce competition for places at Britain's universities may see rents rise significantly this year, a new study has shown.
People enrolling in courses this year will not be asked to pay the increased tuition fees that will be introduced next year and so landlords may well be able to charge more as demand for rental property in select university towns soars.
A study by accommodationforstudents.com has found that the average cost of renting a room in a shared property has increased by three per cent this year and now stands at £67.11 a week.
However, rents have risen at different rates in towns and cities across the UK in the last year.
For example, renting costs in Leamington Spa, close to Warwick University, are up by 16 per cent and while in Edinburgh they are up by eight per cent.
Landlords looking to make a UK property investment in Cardiff, York and Reading will note that these destinations recorded a rise of six per cent.
Rates in London were the highest with landlords able to charge an average of £108.03 per week.
The study looked at the rents of around 80,000 properties in 78 UK cities and towns.
Explaining the increases, Simon Thompson, co-founder and director of accommodationforstudents.com, said: "The rent increases for some cities reflect two key factors. One is the changing nature of accommodation coming on the market.
"The trend is for high-spec, better quality student accommodation, and some locations are leading the way in this area.
"The other key factor is the popularity/desirability of attending some universities that puts pressure on the accommodation available and hence, the charging of higher rents."
Further research published this week by Lloyds TSB revealed that in the last ten years, average house prices in new university towns (those established after 1960) have gone up by 70 per cent, from £91,612 to £155,953.
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