The past few years have not been the most straightforward for students, or parents of students for that matter. The pandemic had a huge impact on the amount of time spent in lessons/lectures and clipped the wings of those heading away to university.
So, it’s with huge relief that schools and universities are now largely back to a normal schedule. Although when it comes to student accommodation, the words ‘crisis point’ have been bandied around as stories continue to emerge around students struggling to find appropriate and affordable places to live in university towns and cities across the UK.
Universities have long been expecting the demographic surge in the number of 18-year-olds that is now under way, but many weren’t prepared for the pandemic and three years in which far more students achieved high A-level marks to secure their places.
Pressure from record results last year also culminated in many students deferring their places to this year, a factor which further amplified the difficulty in finding accommodation within a suitable distance.
It’s even been reported that Manchester University are offering £2,500 to anyone within commuting distance who would switch to living at home.
In addition, Manchester Metropolitan University, whose halls were also suggested to be oversubscribed, has offered £100 a week to first years willing to accept accommodation in Liverpool or Huddersfield.
However, this is not an issue limited to the Manchester area – there is said to be unprecedented demand for university accommodation across the UK in 2022.
This demand outlines a potential opportunity for both landlords and for parents who may be in a position to help their children get onto the property ladder and give them a taste of what it’s like to be a landlord in their own right. Depending on obvious stock and supply issues in certain regions.
A buy-for-university mortgage product is a way in which parents, or other family members, can assist a student in purchasing accommodation for their own use in the city/town where they are studying.
It enables the student to live in the house as a property owner while renting out any spare rooms to fellow students and friends to cover the cost of the mortgage. Such an option offers an alternative way to help first-time buyers onto the property ladder and also means they can remain in the house once they graduate.
This could be a short or longer-term investment so, as with all property investments, there are a range of things to take into account when choosing whether to purchase such a property.
Factors such as the size of the student population, average room costs and the possible increase in property value will all play an important role. Similarly, how affordable the property is, its proximity to campus, shops, and bars and the number of students it can accommodate. Then there is what to do with the property when the student graduates.
All these intricate details demonstrate how complex this type of product is, the importance of the advice process, plus how vital it is for advisers to understand outlying criteria requirements and work closely with lenders who have real insight and expertise in such a specialist area.
Thankfully, options do remain available and let’s hope that these can help enable more students to secure good quality accommodation now and in the future.
Ashley Pearson is National BDM at The Loughborough for Intermediaries
