Student landlords face losing out on £3.2 million in rent

Student landlords face losing out on £3.2 million in rent

0:01 AM, 30th December 2022, About A year ago 14

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The cost-of-living crisis is hitting students so hard that landlords could miss out on £3.2 million as they consider moving out, research reveals.

The findings from insurance firm Adrian Flux highlight that 60% of students are thinking of moving out of their accommodation because they are struggling financially.

In the study of 1,000 students, 66% said that paying for water, gas and electricity were their biggest cost considerations compared with 40% who claimed it was paying for the weekly food shop.

76% want a rent reduction

The research shows that students want their landlord to act – with 76% wanting a rent reduction to help them cope better.

Students also say that landlords should offer:

  • A tenancy to be all-inclusive of bills
  • Low or no deposits
  • Discounts provided based on referrals
  • Greater flexibility with ending the tenancy
  • Ensure properties are energy efficient.

When questioned about their financial priorities, paying for the utilities, commuting and internet access ranked higher than having a Netflix or Amazon Prime account.

Why students chose their accommodation

The survey also highlights why students chose their accommodation with 63% saying it was close to their university campus.

And 51% said their student property was close to amenities including shops, restaurants and a gym.

The survey found that 44% cited property security, 25% price and 23% said the property’s private space with no sharing was a big attraction.

However, just 6% mentioned energy efficiency as a reason for renting their student home.

‘Landlords can reassure tenants’

Chelsea Shakespeare, a manager in the household team at Adrian Flux said: “Landlords can reassure tenants amidst the financial uncertainty by making sure their tenants know where the financial responsibility lies, and that they (landlords) have adequate insurance, as well as informing students what happens if there is an emergency.

“This will alleviate any concerns around related unexpected costs that might arise during a tenancy so students can budget accordingly.

“And in case of the worst, we recommend landlords review their policies and consider cover for all eventualities including rent guarantee, unoccupied periods and legal expenses should disputes arise.”

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Arthur Cotton

8:52 AM, 30th December 2022, About A year ago

Its not rocket science. You keep pushing prices beyond what people can afford then the market will collapse.

Old Mrs Landlord

9:22 AM, 30th December 2022, About A year ago

Reply to the comment left by Arthur Cotton at 30/12/2022 - 08:52
It's not rocket science: landlords' costs keep rising due to external factors (including increased legislation and regulation) and inevatably tenants' costs also rise proportionately. Tenants want landlords to provide energy-efficient properties while at the same time they are asking for rent reductions, discounts and low or no deposits. Sadly, landlords don't have magic money trees growing in their gardens.


11:16 AM, 30th December 2022, About A year ago

A tenancy to be all-inclusive of bills-
Great idea, heating can be left on full blast so the students can loaf around in shorts and T shirts without worry. Leave those windows open I say!
Low or no deposits-
Great idea, tenant can shirk all responsibilities for non paid rent, any damage etc.
Discounts provided based on referrals-
Possibly-less risk could equal a discount-though it would be like herding cats with multiple students both good and bad in a property.
Greater flexibility with ending the tenancy-
Great idea, sorry LLr'd changed my mind, see ya!
Ensure properties are energy efficient.-
Agreed, though the student/tenant can always seek out the better banded properties to start with. If a LLrd has spent many £k's insulating and making the property more efficient then the rent is going to reflect the additional investment.


11:17 AM, 30th December 2022, About A year ago

Reply to the comment left by Arthur Cotton at 30/12/2022 - 08:52The market cannot collapse because students need somewhere to live while they are at university |except the OU]. Unless the universities provide sufficient accommodation, students must rely on the PRS. But, what could [should] collapse is the university sector.
As a result of Blair's deliberately misguided policy, aimed at indoctrinating our young, we now have far too many students, going to far too many universities, being given grants to study far too many pointless subjects, which do not provide them with a suitable degree to support a salary which will enable them to pay down their student loans. We are now resembling the USA and India, where apparently highly qualified people feel entitled, but are actually pretty dim.
We need fewer academic and 'arts' graduates, and many more technical graduates. MSc in building?
If they can't afford the market rent, then they shouldn't be at university. It is not the landlord's responsibility to help them.

Chris Jordan

11:36 AM, 30th December 2022, About A year ago

Incredible, here we are again, poor students, of course 76% want a rent reduction that would go without saying in a crisis or not! 96%+ of landlords want a reduction in the increased taxes and costs being applied to them also but it's not going to happen. So this 60% of students 'thinking' of moving out, where is it they are 'thinking' of going? Honestly sometimes there are too many people, making up too many BS stories and statistics that are simply ridiculous and pointless.

Freda Blogs

11:55 AM, 30th December 2022, About A year ago

No problem, feel free to move out and let your parents and all your fellow tenants' parents/ guarantors pick up the tab for the rent.

I am experienced with student lets - some of the students have zero idea about practical or contractual issues and need a lot of assistance. What are parents and universities teaching (or rather, not teaching) young people these days to equip them to function effectively in an adult environment, where entering into a contract means taking responsibility and living within your financial means. If you can't do that, don't take on the commitment.

I had a student during Covid who claimed she couldn't pay the rent and asked for a delay. I spoke with her on the doorstep and our discussion was interrupted by Deliveroo or similar bringing her lunch to her. She was studying Law - couldn't make it up.

Monty Bodkin

12:07 PM, 30th December 2022, About A year ago

What a silly article that shows very little understanding of the market.


12:17 PM, 30th December 2022, About A year ago

Everytime i read a article about student accommodation it always mentioned that universities need to build more student accommodation.
1. Universities only house 1st year students ,normally.
2. University or pbsa is very very expensive compared to the prs In glasgow anyway , I charge from 500 to 550 pcm per student in a hmo , university or pbsa is £250pcm upwards more expensive for a small room with personal bathroom .
The Student's are always happy to move into a large room in a excellent location, in the prs in my 30 years experience with student lets .
How would paying more rent miles away from their campus help students 🤔


12:19 PM, 30th December 2022, About A year ago

What a lovely study by an Insurance company.
May I point out the Enery bills have doubled and so have Interest rates in the last 12 months

Chris Jordan

13:05 PM, 30th December 2022, About A year ago

Reply to the comment left by Freda Blogs at 30/12/2022 - 11:55
Exactly, no doubt the latest iPhone, no idea of what is going on. They are simply being equipped for a snowflake future where they could potentially get offended if someone chooses salt over pepper!

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