It is remarkable to think that we are now two years on from the advent of the Covid 19 pandemic and the chaos inflicted on students and their landlords and agents.
Initial predictions about the negative consequences of Covid 19 proved wide of the mark, with a vibrant market throughout 2021.
During this period Accommodation for Students experienced a 30% increase in website visitors and an 80% growth in enquiries. But the question for many student landlords and those considering entering the market is – can this continue?
2.7m students
The latest information from the Higher Education Statistics Agency shows that there were 2.7 million students at University in 2021 – over 200,000 more than the previous year.
This trend is being fuelled by growing numbers of domestic student choosing to study at University, as well as an increase in postgraduate students, who account for 50% of the growth.
Such statistics are positive news – as in general terms more students will increase the demand for student housing. It is likely that this trend will continue in the medium term, particularly as the UK will benefit from an increase in the number of 18-year-olds, further driving demand.
Landlord confidence
This positive trend is reflected in sentiment among landlords. In our most recent research study, landlords were asked to rate their confidence levels against a scale of 10. Confidence was high with an average score of 7.7. And a quarter of respondents scored 10 and over 60% eight or over.
This optimism can be seen in other areas, with 85% expecting to let all of their properties in 2022 and only 4% not expecting this to be the case. Given this and the general inflationary pressures in the UK, it was not surprising to learn that over 66% of landlords plan on a rent increase this year, with a further 10% not yet sure.
Campus return
Further good news for student landlords is that students are back on campus. In January we asked over 1,000 students about their current university experience. 91% of them were back on campus in some form or other, either mixing online learning with face to face teaching or on campus all of the time.
This is particularly important for 2022, as students considering their university options will gain confidence that they can experience a more ‘normal’ student experience and make their accommodation arrangements with this in mind.
Positive 2022
The evidence thus far points to the positive trend from 2021 continuing, with sustained growth in student numbers fuelling demand for shared housing, among an increasingly confident landlord audience.
Simon Thompson is CEO of Manchester-based student accommodation website Accommodation for Students.
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