Student landlords in demand - buy to let mortgages

28 May 2009

Demand for student accommodation appears to show no sign of waning, it has been suggested.

According to Savills Research, the growth rate in people applying to undergraduate courses at universities is outpacing the supply of new accommodation by a factor of ten across the UK.

Reporting the survey, Property Wire indicates that those looking to use their buy to let mortgages for sound investment purposes may wish to look towards this blossoming student market.

Jacqui Daly, director of Savills Research, said: "An underlying supply/demand imbalance points to a robust outlook for the sector, while the fundamental strengths of the business model mean that capital values have not fallen to the same degree as other commercial or residential real estate."

With unemployment levels surpassing two million earlier this year, it has been widely predicted that more people will look to continue in higher education, rather than seek jobs in a tough economic environment.

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