According to Accommodation For Students (AFS), student rents have increased nationally by an average of 19% over the past five years.

AFS believes that this is yet another sign of the resilience of the student buy-to-let sector, especially as rental rates in the mainstream market have fallen by 6% over the past year. The situation appears to be even more worrisome in Central London, where rents have declined by -18% in some boroughs. This means that rents in many areas are now at levels not seen since the year 2000. Student rents, by comparison, have increased by 1.5% since April 2008, despite the economic downturn.

According to AFS’s statistics, landlords can often expect 10% yields in areas close to major university campuses. The situation is nearly as positive in other college towns as well, where yields of 7.9% have typically been recorded.