London is the most expensive city in the UK with student rents at £263, followed by Oxford with £208 per week and Cambridge at £199. The least expensive areas are Derby with £89, Sunderland at £93, and Bradford and Preston both at £97.
These figures must be considered when student landlords calculate the profitability of property investments. A lower rent location is not necessarily a bad thing if property prices are low and landlords borrow less using commercial mortgage payments or bridging loans. The high London rents reflect the increased property values in the capital.
There is a high demand for student accommodation and some students are prepared to pay premium prices for more luxury-style accommodation, whilst other students are looking for low rents. Landlords can attract tenants with better facilities such as high-speed broadband or high-class kitchen and lounge communal areas.
Luke Nolan, the founder of Student.com said:
“In cities with a wide range of student housing options, we’re seeing an increasing number of providers becoming aware of the need to price competitively and consider offering additional incentives to students – from group discounts to cashback offers.”
In some cities, average rents have reduced. In London, students now pay on average £2 less than they did in the last academic year.