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 The Bangor student housing market is a dynamic sector, with many students looking for accommodation each year. Becoming a student landlord may feel a little unsteady following the unprecedented last 3 years, but demand has remained high.
Here are our views on the student market over the past 12 months.
Market & Trends
Whilst energy costs have come down from their peaks, mortgage costs and food/consumable prices have increased. It’s safe to say that costs for both landlords and tenants have overall increased again.
Supply
Whilst some residential landlords have exited the market, most student landlords have not. This means supply has remained fairly consistent this year. However, we are aware of some new accommodation blocks planned by student accommodation companies, but nothing which we feel will overly skew supply.
Demand
Student demand remains high although spread across a wider period, with another late spike from international and placement students come September/October. Overall, we secured tenants for 99% of the properties we had available to us to rent, with most of those remaining having viewings.
Trends
We’ve continued to see a trend towards smaller properties, modern finishes, and those with double beds throughout. Shower en-suites continue to be sought-after in larger or room-only accommodation. In our annual survey of tenants, their top requests were double beds, modern fixtures & fittings, and good internet/wi-fi. Properties of 3 bedrooms or fewer, including apartments, remain very popular. Whilst higher occupancy properties have let, they continue to be in decline and command a lower per-person rent. However, with the cost of living increasing, some groups and individual tenants are looking for lower-priced accommodation.
Energy
Prices have overall declined but the market remains volatile. The number of suppliers has greatly reduced but isn’t quite back to the days of the “big 6”. Both tenants and landlords have voiced concerns about energy costs. For the last academic year, we saw around 7% of our managed properties exceed their fair usage allowance, a big jump from 0% seen for many years prior. This year we expect this figure to drastically reduce. Student tenants prefer all-inclusive rents, as it allows them to budget in advance. Not including bills may put your property at a disadvantage, and we saw all-inclusive properties rent quicker overall.
Rents
Most landlords increased rents last year due to energy costs or they excluded bills from the tenancy. Rents for student accommodation have not increased at the same rate as residential but started from a higher starting position. That being said, those with properties of 3 bedrooms or under, including apartments, are likely to see higher returns in 2024/25 due to high demand, with low supply.
Ultimately, making sure your property looks its best, is well-maintained and has modern fixtures & fittings, remains the best way to attract tenants and fair rents. When properties go live, you want your property to stand out for the right reasons!
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