This recession has had some effects on our business that I would just never have thought of. Buy-to-let mortgage specialist Paragon Mortgages are now reporting that there has been a huge leap in the number of mature students seeking rental accommodation.
Many people, as we all know have lost their jobs through no fault of their own when companies have been forced to downsize. Apparently a lot of them are using this opportunity to return to full time schooling and re train.
John Heron, managing director of Paragon Mortgages, said: “If individuals have been made redundant or are struggling to get a job they may see higher education as an attractive option.”
This is potentially very good news for the buy- to- let industry who has traditionally relied heavily on students to populate their properties. It can be a very desirable market to let to as the property often has higher yields because it it is let on a per room basis. Even better is the fact that Paragon claim students have lower void periods.
The fact that mature students are also more likely to run a car and therefore be prepared to travel further to get to university could also see the usual boundaries of student letting being extended outwards.
All the advantages of letting to students but with the added bonus of a higher maturity level, it sounds like any landlord’s dream tenant.
