Exeter Students

Love them or hate them, students are an integral and important part of the property market in Exeter.  From purpose built apartment blocks to privately owned multi bedroom houses, there is a wide choice of accommodation for students to choose from.

Exeter University is now ranked 93^rd in the Times Higher Education World University Rankings, placing it among the very best institutions across the globe and it is this together with a number of other factors which is providing yet another boost to the Exeter property market with more students wanting to study in the city and more private landlords looking to invest.

I have many potential landlords contacting me to discuss investing in a student property. They hear  of the high annual income that can be achieved but sometimes underestimate the work involved in managing a student property and keeping up to date with the changing legal requirements.

Potential and existing landlords should consider what may happen if the property is not let or if additional licencing comes into place preventing the ability to renew HMO licences in certain parts of the city.  Although there is no sign of the market cooling soon, it is worth having a contingency plan, just in case. It is true that in the majority of cases there are excellent annual returns to be made, last year we found all our properties let extremely quickly and demand outstripped supply, meaning landlords were also able to select the best tenants for their properties. I can see no reason why the same won’t be true this year.

I have sold many student properties over the last few years all generally achieving high gross annual yields; however it is worth factoring in to financial calculations potential expenditures, such as replacing furniture, redecorating and dealing with tenancy matters.  With changes to tax allowances coming into place and the potential abolition of the 10% furnished property allowance, it is worth talking to a financial adviser to look at your personal circumstances before you make the purchase.

Students nowadays look for properties that are well equipped, well maintained, clean and tidy.  They ask questions about the landlord and if the property is managed by an agent or the landlord, they are also knowledgeable about the requirements for Energy Performance Certificates, fire detection and licences. In other words, if a property has been neglected, the likelihood is that it will not be let.

If you are looking for information on the requirements for an HMO licence contact us or follow this link to Exeter City Councils’ website: http://www.exeter.gov.uk/index.aspx?articleid=11223.

Generally in the current market student properties do make good investments, however it is worth looking at the pricing and location very carefully. There are few properties on the market and they are currently so popular that the prices are starting to increase quickly.  If you are looking at buying or selling a student property with or without tenants in situ, please call me on 01392 254488 to discuss the current market. I am always happy to talk to potential and existing landlords.