The Article 4 Direction is a ruling passed by government which effectively requires special planning permission to be granted on the conversion of a single family home into a rental property of three or more unrelated tenants.
In cities like Nottingham, Leicester and Newcastle family homes were rapidly being converted to student property, because they were generating higher rental returns than renting to families.
These City Councils have adopted the Article 4 Direction in order to protect the number of single family homes by requiring that planning permission is obtained before converting a single family home into a rental property of three or more unrelated tenants. The impact could see a drop in supply of houses rented as student property and while demand continues to grow it will lead to increases in rental income and low vacancy rates.
The Residential Landlord Association (RLA) Members have vehemently opposed the implementation of the Article 4 Direction in Nottingham, Leeds and Leicester.
RLA members stance is that landlords have been making intensive use of the existing stock in place where it might otherwise be under-utilised and poorly maintained and that councils have enough legislative power to protect housing stock.
Whatever landlords may feel, this ruling is being adopted in a number of cities across the country. Some investors are seeing it as an opportunity to take advantage of the situation. In cities, like Leicester, there are over 38000 students and two top ranked Universities. The limitation of supply of houses means that landlords are opening their eyes to the potential of city centre studio apartments.
One developer is building a development of luxury studios located only 160 metres from the university campus. The investment summary is:
• 5% Interest on deposit – paid monthly
• 8% NET rental income
• Assured for 5 years
• Exclusive New Development
• Fully-furnished apartments
• Hands-off investment managed
• Highly experienced student management company
• In the heart of Leicester City Centre
• Leicester has 38,000 students
• Located 160m from De Montfort University Campus
• Priced from £65000
• Self-contained studios
• University of Leicester only 800m
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The above is a sponsored article.
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Our student property is currently rented under a 12 month tenancy starting 1.8.2013 for 12 months.
One of the students, who has signed the above tenancy (and is guaranteed by her parents) has decided not to go ahead with her postgraduate course (and move to Australia) but has found a friend who wants to live in the property.
I don’t want to alter the original lease, so how do I secure the rent from the new tenant?
What about his deposit and our deposit scheme?
Any ideas what I should do?
Located next to the picturesque Shropshire Union Canal and Bridge Lock, this canal side student property development consists of just 36 en-suite student rooms spread across 2 separate blocks. It is located just a short walk to all of the universities and the city centre and will definitely be an extremely attractive accommodation option for students wanting a mix of great location and fantastic facilities. Continue reading Appealing canal side student development in Chester
We have a 3 storey Georgian terrace that we let as an 8 bed student property. All the ceilings are old lath an plaster, but in order to meet current standards, we should really board over every ceiling with plasterboard, incurring a massive cost, and also ruining much of the character of the rooms by removing the traditional cornicing. Continue reading Fire sprinkler systems for HMO’s – any thoughts?
Is there a solid grounding behind the hype surrounding student buy to let investment property?
The positive market fundamentals of the student property market, as quoted by Knight Frank, point out that student property investment was the best performing property investment in 2012 and that rental income is increasing by five per cent (5%) per annum. These are, however, macro fundamentals that are covering the whole sector.
How can a property investor make a good investment?
What are the items one could look out for to safeguard ones investment? Continue reading Student buy-to-let investment property review
I own a 5 year old two bed flat. It was not bought as a business venture but as a student property for my daughter and friends with a 95% LTV mortgage. I currently let it out as an independent studio and a 1 bed flat.
If I tried to sell the flat I may need to convert it back to a 2 bed and will then only get the original purchase price. I believe the overall floorspace of the flat is too small to be converted into two new independent leases as it is only 56 square metres. The studio is around 20 square metres and the 1 bed is around 36 square metres. Continue reading Shared ownership – can this be done on leasehold flat?
According to Savills there is a shortage of 42,760 student bed spaces in Glasgow. That’s why Glasgow is a buy to let property hotspot and also why we expect these superb central Glasgow Buy to Let Studio’s for the student letting market to sell fast.
Central House, Glasgow is a new purpose built student accommodation development located in the heart of one of the UK’s most under supplied student housing markets offering 9.2% net yield assured for 3 years. Continue reading Why Glasgow is a Buy to Let hotspot
Recently it was revealed that 15,000 fewer young people had applied for university places starting this academic year*. This reduction in student numbers will have a dual impact on landlords who traditionally let their properties in university towns.
ARLA’s advice to landlords operating in university towns and cities Continue reading Increasing the rental market appeal of your student property
We are always very pleased to hear from Sales and Letting Agents up and down the country about what they believe are the Buy to Let Property Hotspots in their area and why. This is the perfect opportunity for agents to share their local knowledge and experience with literally thousands of landlords who may never otherwise hear about them. Details of how to get involved in this exciting addition to Property118 are towards the bottom of this article.
Having spoken to literally hundreds of landlords and letting agents it is quite clear that everybody has their own definition of Property Hotspots. Continue reading Buy to Let Property Hotspots – Calling All Sales and Letting Agents