Parents are moving to cut the cost of sending their children to university by investing in a dwelling in the university town.
According to the Royal Institute of Chartered Surveyors, the number of parents investing in property to give their children somewhere to live while at university has soared in recent years.
It said that a combination of the debt levels their children will face after the tuition fee hike comes into play, coupled with increasing rent rates, particularly in the student accommodation sector has led to the change in ethos.
However, the Institute warned that there are a number of things to consider when purchasing a home for offspring.
A spokesman said: “Location is one of the most important factors for all students searching for a place to live while they study.
“All cities and towns with a large university will most likely have a ‘student’ area, with streets full of student housing, cheap bars, supermarkets, excellent transport links and close proximity to their university campus.
“Any housing in these areas is sure to be student-oriented and the chance of filling a room in these areas is very high. Including these selling points when you create a property listing and advertise a property online will make your offering really stand out and will help make sure your buy-to-let venture gets off on the best possible foot.”
Functional not fancy
It also said that basic renovation is important to get the property into good condition, but expensive furnishings are not necessary for student accommodation.
Beds, wardrobes, desks and chairs should be included within each room, and there should be a communal area of a size “befitting the number of tenants”. Bathrooms and kitchen fixtures don’t need to be “fancy”, but “functional”, it said.
The spokesman added: “Many student accommodation contracts only last for the duration of the academic year, which tends to run from September until May or June.
“This will mean that, for a few months per year, landlords will be without rent payments, and if taking out a loan to pay for the property, it is worth considering how the payments will be made while rent is not being taken on the house or flat.
“Deciding to rent a private property for the short term between semesters or considering holiday lets is a viable solution, or even offering 12-month contracts to students who need it.”
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