Over three quarters (76%) of student landlords have stated that they believe demand for property by students is either good or excellent, according to a survey by Paragon Mortgages.

John Heron, Managing Director of Paragon Mortgages, said: “The student rental market is one of the largest specialist components of the private rented sector. Letting student property is appealing to many landlords as they usually benefit from higher than average rental yields as the rooms tend to be let on an individual basis. There are generally lower levels of arrears as student tenancy agreements benefit from parental guarantees.

“Landlords who let a proportion of their portfolio to students are feeling positive about the market and their experience of letting to students continues to be good. This is an area of the private rented sector which will continue to thrive as long as the demand for university places continues.”

Research by BDRC Continental of NLA landlords also reported on student landlords’ growing confidence in the market, with 70% saying that they rate the prospects for future investment in student property as good.

71% of landlords also said in the PRS Trends Survey that they find student tenants good or excellent in terms of the punctuality of paying rent, with 53% rating their student tenants’ behaviour as being good or excellent.

The only negative experiences reported by landlords, were in relation to the maintenance of property during the tenancy agreement, with just 38% rating this as good or excellent, and only 24% rating the state of the property as good or excellent at the end of the tenancy agreement.

With the increase in tuition fees, 57% of landlords said that in their view there had been no change in demand for student lets.