Mature students 'will boost rental market' - buy to let mortgages

16 April 2009

Higher amounts of people applying to become mature students are set to boost the rental markets in areas near universities, it has been claimed.

Borrowers of buy to let mortgages could benefit from the trend, according to John Heron, managing director of Paragon Mortgages.

He explained that a 12.9 per cent rise in the level of university applications from the 21-24 age group could have implications for the student accommodation sector.

"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," Mr Heron remarked.

He noted that many people in their 20s may be looking to enter higher education due to a weakened employment market in the wake of the economic downturn.

Meanwhile, the number of home loans borrowed by property purchasers rose by four per cent between January and February, according to the Council of Mortgage Lenders.

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