Weak jobs market fuels student rental demand

The weak employment market may be driving rental demand amongst mature students looking to improve their career prospects, Paragon Mortgages claims.

Data released by the Universities & Colleges Admissions Service shows that the number of university applications this year from those older than 24 has gone up by 12.6%.

Overall student applications rose by 8% compared to this time last year.

Paragon says that the increase in demand bodes well for buy-to-let landlords with student rental properties.

John Heron, managing director of Paragon, says: ”If individuals have been made redundant or are struggling to get a job they may see higher education as an attractive option.

“That could explain why we are seeing an increase in older applicants for the 2009 academic year.’”

He adds: “This increase in demand is not only good news for landlords that focus on the student lettings market, but also potentially landlords in the wider vicinity of the university.

“As universities expand demand for good quality accommodation also increases, which should filter through to rental income.

“I’d also expect an increase in the number of mature students applying for postgraduate courses as students look to develop their knowledge further and present the best CV they can to employers.”