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Student Market Update

This time last year there were some concerns about the student accommodation market because of a large dip in University applications due to the increase in maximum fee charges to £9,000 a year. Many UK student landlords will have been relieved when UCAS released much more positive enrolment figures for the 2013/14 academic year, which is still behind the bumper 2011/12 year (pre-fee rise) but is now higher than in 2010/11.

More overseas students than ever are pursuing their studies in Britain but UK students have also decided that a university degree is worth paying for and the share of applications to £9,000 a year courses has increased from 59% last year to 73% this year.
While the number of student halls continues to grow, for now at least, more than 70% of students will be looking for accommodation in the private sector. This leaves ample opportunity for healthy profits provided landlords buy the right properties in the right locations.

Market Comment
Newcastle - Bruce Haagensen is a student landlord in Newcastle. I start by asking him how the demand for student property is in the city. "Demand is good", says Bruce, "as Newcastle University in particular appears to have more 'freshers' than places in halls and they have been contacting agents to take additional houses to accommodate the extra first year students. Northumbria University also appears to be well subscribed.

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