Tag Archives: Student Housing

A call to convert 66,000 student HMO’s back to family homes? Latest Articles, UK Property Forum for Buy to Let Landlords

I have been having a catch up on my on-line reading over this weekend and I have just come across an article which, in my opinion is very ill-informed. A call to convert 66,000 student HMO's back to family homes

Housing supply in many UK cities is being restricted by the conversion of family housing to student lets and local tenants are being prices out, according to new research. International real estate adviser Savills estimates that 66,000 properties or Houses of Multiple Occupation (HMO) now occupied by students could be freed up for conventional family housing through the delivery of more purpose built student accommodation”

The first thing that I would say is that only students want to live near students and the last place I would want to bring up my family is in an area that is highly populated by students.  I love my students tenants but they do not keep regular hours and often return late at night in a happy and noisy mood. There are other issues too but I won’t go into those, most of us who let to students will know what I mean.

For me, the most important point that has been missed is that the cost of converting a family home into a student HMO is colossal and this, coupled with the purchase prices in popular areas, means that landlords have invested a massive amount of money in their properties – will families really want to pay the prices that would cover this investment and also convert the property back to a family home?

In my book “Will You Survive the Mayhem”, I talk about the future of the student market where student numbers are reducing in many areas and there is an oversupply. I have given my predictions of the future of the market and I have warned landlords that we may need a plan “B”.  Plan “B” must, however, take into account that many landlords have big debts on their properties and could not afford to use them for family lets because of the reduced income. There are other markets for which these properties could be used which are realistic and would help to increase supply but Savills are dreaming if they really think that building more purpose built student accommodation is the answer to the shortage of family homes.  They have also overlooked the fact that students can’t wait to get out of “institutional” accommodation and share little houses, at least for their middle year, and there are many empty rooms in purpose build student accommodation in areas where the student population has receded since the increase in University fees.

The article goes on to say

The result is a double whammy for local non student tenants and aspiring home owners. Not only do students price other tenants out of many family housing areas in major UK towns and cities, credit conditions post downturn have favoured landlord investors rather than less equity rich potential owner occupier buyers. ‘Local council coffers would also gain. We calculate that reinstating these student HMOs to homes for non student residents would boost council tax returns by around £1.5 million per town or city, since student only houses are council tax exempt,’ said Savills research analyst, Neal Hudson.”

All local authorities get increased Government funding to cover the cost of Council Tax exemptions for students, the local authority would not be better off if these properties were converted back to family homes, they would in fact be worse off because they would lose the additional “automatic” income and would have to recover it from the families who live there.

The one statement I do agree with in this article is this

“Article 4 of the Town and Country Planning Act proposes restricting new HMO supply which could push students and associated landlord demand into smaller properties, pricing out other occupier and tenant groups.”

I also talked about this in my book because Article 4 Directions are ill-conceived and, in my opinion, will soon sigh and die.

Finally the article says

“For the institutional investor in student housing the UK market offers a mature, counter cyclical investment opportunity”.

Wrong again, I have given a lot of evidence in my book that shows how the student market will continue to recede in all but the Red Brick university areas, many of those are already building campi in the most popular sending countries, and many investors will catch a cold by investing in purpose built student blocks in the next few years.

I am struggling to understand why investors are not being encouraged to put their cash into funds to build more family homes, since we all agree that this is an area of increasing demand and it is very unlikely that the demand will do anything other than grow year on year?

Am I missing something, do Savills know something that I don’t know?

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My book, where I warn about the storm clouds that are gathering for landlords is here >>> http://www.amazon.co.uk/dp/1484855337


Is your shared student house in a uni crime hot spot? HMO's & Student Lets, Landlord News, Latest Articles, Lettings & Management, Property Market News, Property News

Students living at universities in London and Manchester face the worst crime rates – according to a survey of offences reported to police over the last year.

The figures were compiled by The Complete University Guide for the year to May 2012. They list 103 further learning institutions by numbers of burglary, robbery and violent crimes including sex crimes. Continue reading Is your shared student house in a uni crime hot spot?


Student landlords face planning postcode lottery Buy to Let News, HMO's & Student Lets, Landlord News, Latest Articles, Property Market News, Property News

Inconsistent planning policies for student landlords are making some cities no-go zones for property investors.

The problems arise from ‘article 4 directions’ for small shared rental properties – where three to five tenants share a house. Continue reading Student landlords face planning postcode lottery


Corporates sink millions into student letting Buy to Let News, HMO's & Student Lets, Latest Articles, Lettings & Management, Property Investment News, Property Market News

Corporate investment in student letting was up 50% to £1.15 billion last year as rents and yields continue to go through the roof.

The flood of institutional money into student accommodation has continued in the first three months of 2012 with nearly £250 million invested, according to property consultants CBRE. Continue reading Corporates sink millions into student letting


2,000 student landlords warned over ‘poor’ standards Buy to Let News, HMO's & Student Lets, Latest Articles, Lettings & Management, Property Maintenance

More than 2,000 Oxford landlords have had warning letters from the city council about repairs to carry out under the UK’s first blanket HMO licensing scheme.

The city has around 5,000 HMO properties and is at the vanguard of councils cracking down on HMOs.

Although councilors, residents and students back the scheme, landlords and letting agents have voiced issues over ‘petty repairs’ required by the council. Continue reading 2,000 student landlords warned over ‘poor’ standards


Landlords blamed for buying up family homes Buy to Let News, HMO's & Student Lets, Latest Articles, Property Market News

Councillors are blaming student landlords for a shortage of affordable homes for families that is ‘distorting’ the housing market.

Now, councillors in Chichester, Sussex, are considering planning controls to stop landlords opening new houses in multiple occupation shared by students.

An internal council report claims student landlords cater for around 40% of the local university’s first-year students, when most universities offer beds to all their first year intake. Continue reading Landlords blamed for buying up family homes


Crooked landlord admits stealing student deposits Buy to Let News, Cautionary Tales, HMO's & Student Lets, Latest Articles

A university had to take on extra staff to deal with complaints about a landlord who stole deposits on student housing.

Detectives claim 18 theft charges admitted by Tariq Zaman, 42, at Leeds Crown Court were just a ‘representative view’ of the money he stole over several years letting houses in multiple occupation (HMOs) owned by him and his family in the city. Continue reading Crooked landlord admits stealing student deposits


Cleaning Tips for Students Buy to Let News, Cautionary Tales, Guest Articles, Guest Columns, HMO's & Student Lets

Tips for keeping the house looking its best

Here are some quick and simple tips to help keep the house and furniture looking its best, follow these to help save money from your damage and cleaning deposit.

It is worth spending a bit now to save a lot later! Continue reading Cleaning Tips for Students


Letting Agent Ripped Apart by Social Media landlord's log

I am writing this blog to balance out another article on this website and to raise a question about whether it is reasonable for a business to be exposed to a trial by social media.

Is it even possible that a group formed on Facebook could muster up enough support to potentially bring an established business to its knees without a fair trial? Until this week I would have thought not but I have evidence that it is happening right now. Continue reading Letting Agent Ripped Apart by Social Media


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