The great student crisis of Smithdown road
According to the newspapers, backed up by recent university figures, thousands fewer students have applied for university places this autumn and the usual clearing scramble for places after A-level results was much lower than expected. It has been stated by some universities that there will be a drop of about seven per cent in the numbers applying this September, rising to nine or 10 per cent when applications from English students are counted separately. last year we had record numbers of applicants trying to beat the £9,000 a year tuition fee hike, but as expected this year has been poor in relation to application.
What This Means
The families I’ve spoken to indicated that the uncertainty in the job market fueled by volume of graduates unable to get a job (let alone a job which reflects the academic qualifications) have also been a factor. If you localise this in term of property to rent in Liverpool, and how the city has been built on an influx of students flocking to a vibrant city, and freely spending on food, drink, good times and most importantly rented accommodation… the good times maybe over.
In the USA, families have attempted to save for their child’s ferociously expensive education, this has led to a save culture in further education. As the exponential rise in tuition fees have been brought on at pace, this is not the case in the UK. It’s reasonable to assume that housing areas that have been regenerated by the student pound where vast amounts of HMO accommodations are available may now be under-threat.
If a three year course costs ¬£27,000 in fees, placing this figure against the last intake cost of ¬£9,000 over the same three year period, will the students choose to live away from home? Would students wish to incur another substantial cost. Areas that have survived and regenerated because of the student housing boom, could now struggle as the demand is sure to reduce, until families have time to implement a university savings plan.
What Should Happen If You Own A Student Rental
We have three possible outcomes to this problem
1) Stay the same, reduce prices and hope the students, who now have market forces on their side, choose your HMO.
2) Sell your home.
3) Convert your asset to a standard rental property.