Building contents insurance for landlords may become a much sought-after product next year, as it has been predicted the student lettings market will continue to be buoyant.
London estate agents LDG noted more university goers were looking for rented accommodation this year than in 2010.
Indeed, the volume of students looking for homes increased to the extent that half of all tenancies handled by the company were to this demographic in 2011.
Partner and lettings manager at the organisation Javier Carrillo explained the demand for rented accommodation has been boosted by the decision to raise university tuition fees.
This is a trend also noted by asset management company Kames Capital. With head of property investment Phil Clark saying the houses lived in by students present a good opportunity for those who want to make money in the buy to let sector.
"I believe investors should consider a greater exposure to alternative sectors such as residential property, student accommodation or healthcare property," the expert stated.
"One of the key attractions of these alternative sectors is they generally have a high income yield, an ability to track inflation and have low vacancy rates," he added.
He advised looking into these opportunities in 2012, although he warned the property market could continue to be "challenging" like this year was.
This is why looking at fundamental drivers like the number of people interested in the paying for accommodation, is important.
Mr Clark explained this is why the house sector remains a good one in university towns because swathes of young people are still planning on going into higher education despite the tuition fee rises.
"Student accommodation demand for the best universities is leading to typical annual vacancy rates of less than two per cent," he revealed.
The specialist also pointed to the residential sector in the south-east of England for some more great opportunities to invest.
Some areas of this region as seeing rental increases of as much as seven per cent per annum, with demand outweighing supply, he stated.
Those hoping to pour money into houses in the south-east may be pleased to hear partner at LDG Laurence Glynne was particularly upbeat about London's West End.
He noted a lack of available property on the market has seen a boost in the amount of money people will pay for houses.
"We have achieved record prices in favoured West End apartment buildings," Mr Glynne stated.
"Theatre, arts and the cultural energy in the West End have a significance in attracting people to property in the capital, whether for their primary residence, investment or renting," he added.
Meanwhile, Mr Carrillo noted an increase in lettings in London to individuals, with one and two-bedroom flats in the middle of the market doing particularly well, which he attributed to a wave of redundancies in the City, leading to a drop in professionals sharing property.
Another factor that is driving a buoyant rental market in the capital is the coming of the London Olympics in 2012.
When the Games arrive, Mr Carrillo expects to see a rise in demand for short-term contracts in serviced apartments.
Furthermore, the lettings professional was very optimistic about the current conditions for landlords in London.
"London remains the financial centre of the world and is seen as one of the safest havens for city living," he noted.
He also remarked that renewals are up 40 per cent and there are no indications they will fall again in the next year.
Tenants are choosing to stay put because would-be first-time buyers are unable to get their hands on finance, there are not many available houses on the market and rents are more achievable.
Elsewhere, spokesman for affordable house prices campaign website PricedOut Matt Griffith gave advice that may also spell good news for landlords.
He told first-time buyers not to look for property to purchase in 2012, encouraging them instead to "batten down the hatches whilst they wait out for a saner housing market and lower prices".
Should people follow his advice, it could mean individuals are forced to stay in rented accommodation for another 12 months.
"The outlook for first-time buyers is pretty grim," Mr Griffith said. Earnings are down, the threat of a slip back into recession is looming, worries are abound over the eurozone debt crisis, high deposit requirements look as if they are not yet close to falling and banks are beginning to tighten up their lending criteria yet more.
With each of these downbeat factors affecting the housing market, 2012 could be "seriously depressing" for first-time buyers, Mr Griffith said.
Source
http://www.simplelandlordsinsurance.com/news/article/00310/student-market-to-remain-buoyant-in-2012-experts-suggest.aspx
London estate agents LDG noted more university goers were looking for rented accommodation this year than in 2010.
Indeed, the volume of students looking for homes increased to the extent that half of all tenancies handled by the company were to this demographic in 2011.
Partner and lettings manager at the organisation Javier Carrillo explained the demand for rented accommodation has been boosted by the decision to raise university tuition fees.
This is a trend also noted by asset management company Kames Capital. With head of property investment Phil Clark saying the houses lived in by students present a good opportunity for those who want to make money in the buy to let sector.
"I believe investors should consider a greater exposure to alternative sectors such as residential property, student accommodation or healthcare property," the expert stated.
"One of the key attractions of these alternative sectors is they generally have a high income yield, an ability to track inflation and have low vacancy rates," he added.
He advised looking into these opportunities in 2012, although he warned the property market could continue to be "challenging" like this year was.
This is why looking at fundamental drivers like the number of people interested in the paying for accommodation, is important.
Mr Clark explained this is why the house sector remains a good one in university towns because swathes of young people are still planning on going into higher education despite the tuition fee rises.
"Student accommodation demand for the best universities is leading to typical annual vacancy rates of less than two per cent," he revealed.
The specialist also pointed to the residential sector in the south-east of England for some more great opportunities to invest.
Some areas of this region as seeing rental increases of as much as seven per cent per annum, with demand outweighing supply, he stated.
Those hoping to pour money into houses in the south-east may be pleased to hear partner at LDG Laurence Glynne was particularly upbeat about London's West End.
He noted a lack of available property on the market has seen a boost in the amount of money people will pay for houses.
"We have achieved record prices in favoured West End apartment buildings," Mr Glynne stated.
"Theatre, arts and the cultural energy in the West End have a significance in attracting people to property in the capital, whether for their primary residence, investment or renting," he added.
Meanwhile, Mr Carrillo noted an increase in lettings in London to individuals, with one and two-bedroom flats in the middle of the market doing particularly well, which he attributed to a wave of redundancies in the City, leading to a drop in professionals sharing property.
Another factor that is driving a buoyant rental market in the capital is the coming of the London Olympics in 2012.
When the Games arrive, Mr Carrillo expects to see a rise in demand for short-term contracts in serviced apartments.
Furthermore, the lettings professional was very optimistic about the current conditions for landlords in London.
"London remains the financial centre of the world and is seen as one of the safest havens for city living," he noted.
He also remarked that renewals are up 40 per cent and there are no indications they will fall again in the next year.
Tenants are choosing to stay put because would-be first-time buyers are unable to get their hands on finance, there are not many available houses on the market and rents are more achievable.
Elsewhere, spokesman for affordable house prices campaign website PricedOut Matt Griffith gave advice that may also spell good news for landlords.
He told first-time buyers not to look for property to purchase in 2012, encouraging them instead to "batten down the hatches whilst they wait out for a saner housing market and lower prices".
Should people follow his advice, it could mean individuals are forced to stay in rented accommodation for another 12 months.
"The outlook for first-time buyers is pretty grim," Mr Griffith said. Earnings are down, the threat of a slip back into recession is looming, worries are abound over the eurozone debt crisis, high deposit requirements look as if they are not yet close to falling and banks are beginning to tighten up their lending criteria yet more.
With each of these downbeat factors affecting the housing market, 2012 could be "seriously depressing" for first-time buyers, Mr Griffith said.
Source
http://www.simplelandlordsinsurance.com/news/article/00310/student-market-to-remain-buoyant-in-2012-experts-suggest.aspx
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