Student rents are starting to slow, according to a new report by EasyRoommate.co.uk. The report also found that student flatshares are now cheaper than staying in halls of residence, which will be seen as good news by many landlords building insurance policy holders who own student property.
The cost of renting student accommodation has increased by 3.9%, from £332 per month to £345, while non-student rentals have increased by 7.6%, going up from £409 to £440 per month.
But overall, demand for student accommodation has been reduced, largely due to the increase in tuition fees and the manner in which students must now obtain funding.
Director of EasyRoommate.co.uk, Jonathan Moore, said: “The rise in tuition fees and the prospect of a debt mountain on leaving university was the final nail in the coffin for many would-be students. The drop in applications has eased the pressure on student accommodation and this has caused rent rises to slow compared to the wider market. Something that will be very welcome to cash conscious students and parents.”
The cost of living in a halls of residence has gone up more quickly than that of flatsharing over the last year. It costs £4,035 for a regular single room in a halls of residence, up from £3,827 in 2011. This 5.5% increase is down to a number of factors, including a demand for higher-end accommodation with such facilities as ensuite bathrooms and double beds.
While the halls of residence will always be more of a social hub than flatshares, the former may well help students save some valuable pounds over the year – which is also good news for landlords looking to fill their properties.